Prepare the journal entry to record the equipment

Assignment Help Accounting Basics
Reference no: EM132740351

Question - Higher Ltd. purchased a large piece of earth-moving equipment for $5,000,000. The vehicle had six tires, each worth $100,000 and expected to last two years. This is the maximum value that should be allocated to tires. The reminder of the purchase cost, including incremental costs, was attributable 40% to the vehicle body, expected to last 6 years and 60% to the engine, expected to last 4 years. Other costs associated with the machine:

HST, 15% of $5,000,000

Cost $750,000

Delivery 12,200

Repair of incidental damage done during delivery 5,000

Servicing and tune-up to get the machine ready to use 14,000

Required - Prepare the journal entry to record the equipment and the associated expenditures. Record all items on the list plus the $5,000,000 invoice price.

Reference no: EM132740351

Questions Cloud

Calculate the effective monthly rent : Given the following information, calculate the effective monthly rent (annual rent based on monthly payments at the start of each month). Lease Term
What types of price discrimination have you experienced : What types of price discrimination have you experienced (for example, out-of-state versus in-state tuition differences, lower ticket prices at movie theaters.
Compute for the average accumulated expenditures : Compute for the average accumulated expenditures, interest to be capitalized and total cost of the asset in 2020 and 2021
Important role in corporate finance : Working capital management has the most important role in corporate finance
Prepare the journal entry to record the equipment : Prepare the journal entry to record the equipment and the associated expenditures. Record all items on the list plus the $5,000,000 invoice price
What time management techniques : What time management techniques can you use to accomplish your goal of earning a college degree?
State the charges to statement of comprehensive income : Calculate and state the charges to the statement of comprehensive income for 20X6 and 20X7 if the leases were treated as operating leases
Key elements of supply chain : What is a supply chain? What are some potential benefits of managing the supply chain?
Determine the balance of Investment in CAT branch account : The receiving branch paid additional freight in the amount of 8,750. Determine the balance of the Investment in CAT branch account in the separate books

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