User Account

All Pages

How much should NZ Company recognise as the cost

Assignment Help Financial Accounting
Reference no: EM132996150

Question - NZ Company purchased some equipment on 1 June 2019. The purchase price was $500,000. NZ Company financed the purchase price with a two-year bank loan at 8% interest. In addition, NZ Company paid $25,000 import duty, $20,000 to have the equipment shipped to its factory and $10,000 to have the equipment assembled and tested. Finally, NZ Company paid $55,000 GST associated with the equipment, which the government would refund. NZ Company began using the equipment on 1 July 2019. How much should NZ Company recognise as the cost of the equipment on 1 July 2019?

Reference no: EM132996150

Questions Cloud

What does imply about the expectation of the movement : What does this imply about the expectation of the movement of short-term interest rates in the future? Will it go up, go down, or stay roughly unchanged?
What should be current rate for a two-year treasury security : What should be the current rate for a two-year Treasury security? The current one-year Treasury bill rate is 5.2 percent and the expected one-year rate.
What is the expected NPV : The project will also require an initial working capital of $5,000, which will be recovered at the end of the project. What is the expected NPV
How much cash will gannon receive on date note was issued : How much cash will Gannon receive on the date the note was issued? Gannon Auto issued a $180,000, five-year note payable to Starkey Vehicles
How much should NZ Company recognise as the cost : NZ Company began using the equipment on 1 July 2019. How much should NZ Company recognise as the cost of the equipment on 1 July 2019
Prepare the journal entries to record the note on march : Blossom Lake Corp. issues a $ 660,000, 4-year, 3% note payable on March 31, 2021. Prepare the journal entries to record the note on March 31, 2021.
Calculate the value capitalized by the lessee : This agreement requires rental payments of $20,829.49 starting when the contract is signed for 5 years. Calculate the Value capitalized by the lessee
How many total shares will the merged bank have outstanding : If Courthouse County's shares are currently trading for $85 per share, what is the exchange ratio between the equity shares of the two institutions?
What loan rate would charge : In order to help fund a loan request of $10 million for one year from one of its best customers, What loan rate would it charge?

Reviews

Write a Review

Financial Accounting Questions & Answers

  How much going to have in the bank

XYZ bank which offers you the equivalent of 0.5% per month in interest how much you are going to have in the bank considering both principal and interest?

  Did you identify any investments in other entities

Did you identify any investments in other entities? If so, are they accounted for under the cost method, the equity method, or consolidation

  Prepare journal entries for the given transactions

Prepare journal entries for the transactions noted above. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

  What is the balance in accumulated depreciation on May

The straight-line method is used for depreciation. What is the balance in accumulated depreciation on May 1, 2021 when the asset is sold

  Calculate the average per share amount of the preferred

Calculate the average per share amount of the preferred and common shares at January 1, 2021. (Round answers to 2 decimal places, e.g. 52.75.)

  What percentage of the gross price is the investment bank

Video Games, Inc., with the help, What percentage of the gross price is the investment bank charging Video for underwriting the stock issue?

  How much money do they need to put into the account

If the account promises to pay a fixed interest rate of 3.9% per? year, how much money do they need to put into the account today

  Compute contribution margin for february

Compute Contribution Margin for February. Sales for both months totaled 63237 units with variable manufacturing costs of 7 per unit.

  Summarize the ethical factors in this situation

Summarize the ethical factors in this situation. Identify the parties potentially affected by this audit and the fee plan proposed

  Budgeted labor hours and actual manufacturing overhead

Kei Products uses a predetermined overhead application rate of $18 per labor hour. A review of the company's accounting records revealed budgeted manufacturing overhead for the period of $621,000, applied manufacturing overhead of $590,400, and overa..

  Statements mentioned in the management discussion

How important do the financial statements appear to be with regard to the annual report? Are the financial statements mentioned in the management discussion?

  What is the standard deviation of unit sales

Problem - Sampson Corp. is evaluating the introduction of a new product. What is the standard deviation of unit sales

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