User Account

All Pages

Determine the amount to be capitalized in the asset account

Assignment Help Accounting Basics
Reference no: EM133102553

Question - Southwest Milling Co. purchased a front-end loader to move stacks of lumber. The loader had a list price of $140,000. The seller agreed to allow a 4 percent discount because Southwest Milling paid cash. Delivery terms were FOB shipping point. Freight cost amounted to $1,200. Southwest Milling had to hire a specialist to calibrate the loader. The specialist's fee was $1,800. The loader operator is paid an annual salary of $60,000. The cost of the company's theft insurance policy increased by $800 per year as a result of acquiring the loader. The loader had a four-year useful life and an expected salvage value of $6,000.

Required - Determine the amount to be capitalized in the asset account for the purchase of the front-end loader.

Reference no: EM133102553

Questions Cloud

Leadership and organizational effectiveness : Examine the connection between leadership and organizational effectiveness.
Summarise the outcomes of the EYLF : Summarise the outcomes of the EYLF - Write notes on the AQF level 7 (Bachelor Degree) criteria
Create a dish using the techniques : Create a dish using the techniques, recipes and cooking methods that you have learned from modules 1 - 4. This dish should represent your personality or your cu
Evaluate the competitive factors of asian countries : Asia is considered as a preferred region to do business. Determine and evaluate the competitive factors of Asian countries.
Determine the amount to be capitalized in the asset account : The loader had a four-year useful life and an expected salvage value of $6,000. Determine the amount to be capitalized in the asset account
Why is communication in the workplace so important : Why is communication in the workplace so important? Which form(s) of communication are the most important?
What is the order of a risk management process : 1. Effective risk management is the process of controlling what threats to an organization?
Develop new software applications : Microsoft is considering setting up a Research and Development facility in India to develop new software applications. Should it staff the new facility with Mic
Basis of weekends and weekdays : Ram was a happy man, counting a good sum of cash every day. He had opened a restaurant only three months back in Ahmedabad and the format and the concept appear

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.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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