Calculate the amount of cost

Assignment Help Accounting Basics
Reference no: EM132993149

Problem - Kelly manufacturing company bought a parcel of land, buildings and machinery on 21 August 2014 for a cash price excluding GST of $800,000. Fair values of the assets on the acquisition date were appraised as:

Land $250,000

Buildings 400,000

Machine 200,000

Total $850,000

Required - Calculate the amount of cost that should be assigned to each of the assets and prepare a general journal entry to record the purchase.

Reference no: EM132993149

Questions Cloud

Explain how and why standard costs used in product costing : Explain how and why standard costs are used in product costing. Explain how standard material prices and quantities may be set
Prepare a statement of cash flows for XYZ Ltd : Share capital is increased by the bonus issue of 20 000 shares for $1.00 each out of retained earnings. Prepare a statement of cash flows for XYZ Ltd
Describe how toyota could use standard costing for control : Describe how Toyota could use standard costing for control. focus on the cost of producing car doors to illustrate standard costing for control.
Solve the materials price for hanson inc : Solve the materials price and quantity variances. Last month 1,800 kgs of material were purchased and 1,700 kgs used to make 1,000 Jerfs.
Calculate the amount of cost : Calculate the amount of cost that should be assigned to each of the assets and prepare a general journal entry to record the purchase
Solve the materials price and quantity variances : Think of some examples of perfection (ideal) standards and practical standards (can be from an accounting or non-accounting area). Which do you prefer?
Develop a new system or improve an existing system : Develop a new system or improve an existing system utilizing Reliability engineering principles and methods - complex issue and resolution
Calculate the basic earnings per share : Calculate the basic earnings per share assuming Dawson earned Net income of $260,000 and no preferred shares outstanding
Part of goods with an intention of separating : A delivery of part of goods with an intention of separating it from the whole, does not operate as a delivery of the remainder." Comment.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Who would be affected if persons suggestion is followed

How would increasing the depreciation period affect American Movieplex's income?

  Journalize the transactions on the books of both companies

Rita Company buys merchandise on account from Linus Company. The selling price of the goods is $900 and the cost of the goods sold is $590.

  Compute the equivalent units of production for materials

Assume that the company uses the FIFO method in its process costing system. Compute the equivalent units of production for materials

  Explain the purpose of a cash flow statement

Explain the purpose of a cash flow statement and how it reflects the firm's financial status. Also, analyze Ford Motor Company's cash flow

  Describe how the transactions fit into the accounting cycle

Describe how these transactions fit into the accounting cycle. How would the accounting process flow?

  Explain the types of influence tactics with examples

Explain the types of influence tactics with examples - issues than he was able to exert as a congressman, senator, and vice president of the United States

  Listed below in scrambled order are 13 income statement

listed below in scrambled order are 13 income statement categories. use the numerals 1 through 13 to indicate the order

  Npv model of capital budgeting deals

Provide an explanation of how adjusting the discount rate in the basic NPV model of capital budgeting deals with the problem of project risk.

  Post the revenue journal and the general journal

Post the revenue journal and the general journal to the following accounts in the general ledger, inserting the account balances only after the last postings

  What was the balance of owner equity on november

During November, the net amount increased by $10,000. What was the balance of owner's equity on November 30

  Why do companies hesitate to prosecute white-collar

nbspthere is an old saying crime doesnt pay. however for david miller crime paid for two mercedes-benz sedans a lavish

  Have ever had conflict with a client or a colleague

Have you ever had conflict with a client or a colleague? What happened and how did you handle it? Have you ever disagreed with your supervisor

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