Orion Flour Mills purchased a new machine and made the following expenditures: Purchase price $66,000 Sales tax 5,550 Shipment of machine 910 Insurance on the machine for the first year 610 Installation of machine 1,820 The machine, including sales tax, was purchased on account, with payment due in 30 days. The other expenditures listed above were paid in cash. Required: Record the above expenditures for the new machine. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Solved
Show answers
More tips
- S Style and Beauty How to Sew Harem Pants?...
- C Computers and Internet Е-head: How it Simplifies Life for Users?...
- F Family and Home How to Choose the Best Diapers for Your Baby?...
- F Family and Home Parquet or laminate, which is better?...
- L Leisure and Entertainment How to Properly Wind Fishing Line onto a Reel?...
- L Leisure and Entertainment How to Make a Paper Boat in Simple Steps...
- T Travel and tourism Maldives Adventures: What is the Best Season to Visit the Luxurious Beaches?...
- H Health and Medicine Kinesiology: What is it and How Does it Work?...
- O Other How to Choose the Best Answer to Your Question on The Grand Question ?...
- L Leisure and Entertainment History of International Women s Day: When Did the Celebration of March 8th Begin?...
Answers on questions: Business
- B Business Seventy-five percent of the research and development and selling expenses were traceable to Askin. Profit before taxes for the Askin product, per life-cycle income statements,...
- B Business On Competition – The Five Forces & The Blue Ocean a. We have said that competition forces society to be better by providing superior value. Identify and discuss your team...
- B Business Suppose the market for air travel has 100 high type consumers and 100 low type consumers. High types are willing to pay $300 for low quality tickets and $800 for high quality...
- B Business MC Qu. 116 A product sells... A product sells for $225 per unit, and its variable costs are 68% of sales. The fixed costs are $336,000. What is the break-even point in sales...
- B Business The next dividend payment by Savitz, Inc., will be $2.00 per share. The dividends are anticipated to maintain a growth rate of 6 percent forever. If the stock currently sells...
- B Business Suppose that when the price of cereal rises 10 percent, the quantity demanded of cereal falls by 5 percent. Based on this information, what is the approximate price elasticity...
- B Business Free points and will give brainliest...
- M Mathematics Asquare with side x is changing with time where x(t)=3t+1. what is rate of change of the area of the square when t=2 seconds....
- B Biology How does the color of light affect the germination time (amount time a plant takes to develop) of a radish seed?...
- M Mathematics Jared has two dogs spot and rover. spot weights 75.25 pounds.rover weights 48.8 pounds more than spot how much does river weight?...
Ответ:
The following are the journals to record the purchase transaction:
Debit Machine (Fixed asset) $74,280
Credit Cash $2,730
Credit Accounts Payable $71,550
(To record expenditure on machine)
Debit Prepayment $610
Credit Cash $610
(To record prepaid insurance on machine)
Explanation:
Based on IAS 16 Property, Plant and Equipment, the cost of an asset comprises: (i) the purchase price plus import duties and taxes (ii) any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in a manner intended by management; and (iii) the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located.
Using the basis above, the cost of the machine comprises the purchase price, sales tax, shipment cost and installation = $66,000 + $5,550 + $910 + $1,820 = $74,280. The machine, including sales tax, was purchased on account to the tune of $71,550, the credit was recognized in accounts payable consequently. Since the remaining costs were paid for by cash, a credit of $2,730 was passed to Cash. However, the insurance cost is a prepaid asset and should not be capitalized with the asset. It would be amortized, on straight-line basis, over one year.
Ответ:
$3.12 per share
Explanation:
Diluted shares outstanding:
= Shares outstanding for the period × Shares outstanding under an option price of $31 per share[(average market price - option price) ÷ average market price]
= 192,000 + 12,600 × [($36 - $31) ÷ $36]
= 192,000 + 1,750
= 193,750
Diluted earnings per share:
= Net Income ÷ Total Diluted shares outstanding
= $605,000 ÷ 193,750
= $3.12 per share