What total cost will the equipment be recorded

Assignment Help Accounting Basics
Reference no: EM132779112

ABC Designs, Inc purchased equipment with a list price of $00,000 on June I, 20X9. ABC Designs, Inc. quali?ed for a 3% discount off the list price. ABC Designs, inc. paid $28,200 down to the seller and signed a 3 month note payable at a 4% annual rate due to the vendor, with interest of $100 due to the vendor at the end of each of the next three months and the note principal of $30,000 due on September 1, 20319. In addition, the ABC Designs, Inc. paid the following costs in cash: sales tax on the equipment purchase of $3,492, equipment delivery costs of $308, and installation labor and material costs of $2,000. When the equipment was delivered, it fell off the delivery truck and cost the ABC Designs, Inc. an added $400 for repairs.

Problem a) At what total cost will the equipment be recorded?

Problem b) Prepare the entry' on June 1, 20x9, to record the purchase

Reference no: EM132779112

Questions Cloud

Why is it important that tesla implement motivation : Why is it important that Tesla implement motivation strategies to support their employees, their work, and development? Provide three (3) examples utilising the
At what amount should the affected accounts be corrected : The collection of an account in the amount of $20,000 was recorded. At what amount should the affected accounts be corrected
Personality differences can impact cooperation : Cultural differences and personality differences can impact cooperation. Team building is an important aspect of communication.
How tesla management can use goal-setting theory to help : Explain how Tesla management can use goal-setting theory to help motivate their employees and build self-efficacy, through building an appropriate motivation
What total cost will the equipment be recorded : What total cost will the equipment be recorded? ABC Designs, Inc purchased equipment with a list price of $00,000 on June I, 20X9.
Describe the relational statement of the nursing theory : Identify the major concepts and relational statement of the nursing theory. Concepts common to most nursing theories include: Person, health, nursing.
Which classes of portable computers could meet : Which classes of portable computers could meet the needs of your organization
Hearing conservation program : As part of the Hearing Conservation Program, the employer is required to evaluate the effectiveness of any hearing protection provided to employees.
What balance in the investment in liddy account at december : Fair Value/Cost Method of accounting for its investment in Liddy. The balance in the Investment in Liddy account at December 31, 2020 will be

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd