Santa Rosa recently purchased a new boat to help ship product overseas. The following information is related to that purchase: Purchase price $4,500,000 Cost to bring boat to production facility $25,000 Yearly insurance cost $25,000 Annual maintenance cost of $37,000 Received 8% discount on sales price Question Content Area A. Determine the acquisition cost of the boat. $fill in the blank da86db044053008_1 Question Content Area B. Record the journal entry needed. If an amount box does not require an entry, leave it blank. blank Accounts Receivable Accounts Receivable Patent Patent

Santa Rosa recently purchased a new boat to help ship product overseas. The following information is related to that purchase: Purchase price $4,500,000 Cost to bring boat to production facility $25,000 Yearly insurance cost $25,000 Annual maintenance cost of $37,000 Received 8% discount on sales price Question Content Area A. Determine the acquisition cost of the boat. $fill in the blank da86db044053008_1 Question Content Area B. Record the journal entry needed. If an amount box does not require an entry, leave it blank. blank Accounts Receivable Accounts Receivable Patent Patent

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 9EA: Santa Rosa recently purchased a new boat to help ship product overseas. The following information is...

See similar textbooks

Question Content Area

Santa Rosa recently purchased a new boat to help ship product overseas. The following information is related to that purchase:

Purchase price $4,500,000
Cost to bring boat to production facility $25,000
Yearly insurance cost $25,000
Annual maintenance cost of $37,000
Received 8% discount on sales price

Question Content Area

A. Determine the acquisition cost of the boat.

$fill in the blank da86db044053008_1

Question Content Area

B. Record the journal entry needed. If an amount box does not require an entry, leave it blank.

blank		Accounts Receivable	Accounts Receivable
		Patent	Patent

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Santa Rosa recently purchased a new boat to help ship product overseas. The following information is related to that purchase: Purchase price $4,500,000 Cost to bring boat to production facility $25,000 Yearly insurance cost $25,000 Annual maintenance cost of $30,000 Received 8% discount on sales price Determine the acquisition cost of the boat, and record the journal entry needed.
Invoice price |Shipping cost Installation cost Cost to tear down old swing Insurance to cover 2019 and 2020 Necessary repair during installation 261,100 1,100 6,000 200 4,000 2,000 Required 1 Determine the capitalized cost of the asset. Туре of Cost $ Value of Cost Page 1 2 Determine the proper treatment for the following expenditures. Key Capitalize Expense Treatment Oil the gears of the swing each month, $25 Installed new swing seats in year 2, $22,000 Replaced the motor in year 3, $32,000 Repainted the posts in year 3, $600 Spray the swing seats with sanitizer each week, $45 Repaired broken exterior light on two of the swings, $175
COLLEGE Question 4: The following details regarding Machines are provided: Machine Date of purchase Cost Date of sale Cash Proceeds $ 1,000,000 02/06/2020 450,000 XX Y 05/04/2017 01/01/2019 2,000,000 The policy of the company is to depreciate its PP&E at 10% on cost. Depreciation is charged in full in the year of purchase disposal. Required: For year ended 31st December 2020 prepare: Machinery account Accumulated depreciation account Machinery disposal a/c SPOL Extract SFP Extract Question 5: A machine was purchased on 2nd July 2016 for $1,200,000. It was traded in for new one whose price was $1,000,000 on 2nd June exchange. The policy of the company is to charge depreciation for its PP&E at 10% on cost per annum Depreciation is charged in depreciation is charged in the year of disposal.
genow.com/ilm/takeAssignment/takeAssignmentMain.do?inprogress-true stom Order ♥ e < eBook costs. Gilroy Corporation is considering new equipment. The equipment can be purchased from an overseas supplier for $3,200. The freight and installation costs for the equipment are $650. If purchased, annual repairs and maintenance are estimated to be $430 per year over the 4-year useful life of the equipment. Alternatively, Gilroy can lease the equipment from a domestic supplier for $1,580 per year for 4 years, with no additional Unit costs: Purchase price Freight and installation Repair and maintenance (4 years) Lease (4 years) Prepare a differential analysis dated December 11 to determine whether Gilroy should Lease Equipment (Alternative 1) or Buy Equipment (Alternative 2). Hint: This is a lease-or-buy decision, which must be analyzed from the perspective of the equipment user, as opposed to the equipment owner. If an amount is zero, enter "0". For those boxes in which you must enter…
Problem 9 Mel Company acquired a new machinery On August 15, 2022. The following data are available: P 1,400,000 20,000 40,000 15,000 50,000 30,000 Invoice price Cash discount available but not taken on purchase Freight paid on the new machinery Cost of removing the old machinery Installation cost of the new machinery Testing cost before the new machinery was put into regular operation Proceeds from the sale of samples produced during testing Cost of training employees which improved their efficiency Loss on premature retirement of the old machinery Estimated cost of manufacturing similar machinery in the entity's own plant, including overhead Compute for the cost of the new machinery 5,000 10,000 5,000 1,300,000
View Policies Current Attempt in Progress Culver Company purchases $4400 worth of new furniture (plus 5% GST and 7% PST). The amount debited to the Furniture account would be O $4620 O $4928 O $4708 O $4400 eTextbook and Media Save for Later ļ Attempts: 0 of 1 used Submit Answer
eBook Show Me How Question Content Area Differential Analysis for a Lease-or-buy Decision Moffett Industries is considering new equipment. The equipment can be purchased from an overseas supplier for $3,220. The freight and installation costs for the equipment are $610. If purchased, annual repairs and maintenance are estimated to be $390 per year over the 4-year useful life of the equipment. Alternatively, Moffett Industries can lease the equipment from a domestic supplier for $1,420 per year for 4 years, with no additional costs. Question Content Area a. Prepare a differential analysis dated February 12 to determine whether Moffett Industries should lease (Alternative 1) or purchase (Alternative 2) the equipment. (Hint: This is a “lease or buy” decision, which must be analyzed from the perspective of the equipment user, as opposed to the equipment owner.) If an amount is zero, enter "0". Differential AnalysisLease (Alt. 1) or Buy (Alt. 2) EquipmentFebruary 12 Line…
P t Page: 10 of 23 - |+ Automatic Zoom Use the following information for the next three questions: A group of Entity A's biological assets has a carrying amount of P100,000 before year-end adjustments. Information at year-end is as follows: Active Market #1 Quoted price Transport costs Costs to sell Active Market #2 Quoted price | Transport costs Costs to sell P130,000 10,000 2,000 P135,000 12,000 3,000 6. If Entity A expects to transact in Active Market #1, how much is the fair value? a. 130,000 b. 120,000 c. 118,000 d. 123,000 Jeed the answer?
Question Workspace Check My Work (2 remaining) eBook Rader Railway is determining whether to purchase a new rail setter, which has a base price of $394,000 and would cost another $58,000 to install. The setter will be depreciated according to the MACRS 3-year class of assets, and it would be sold after three years for $196,000. Using the setter requires a $26,000 increase in net working capital. Although it would have no effect on revenues, the setter should save the firm $171,000 per year in before-tax operating costs (excluding depreciation). Rader's marginal tax rate is 40 percent, and its required rate of return is 13 percent. Should the setter be purchased? Do not round intermediate calculations. Round your answer to the nearest cent. Use a minus sign to enter a negative value, if any.
Required information DVH Technologies purchases several parts for the instruments it makes via a fixed-price contract of $162,000 per year from a local supplier. The company is considering making the parts in-house through the purchase of equipment that wll have a first cost of $232,0000 with an estimated salvage value of $30,000 after 5 years. The AOC is difficult to estimate, but company engineers have made optimistic, most likely, and pessimistic estimates of $67000, $85.000, and $120,000, respectively. The MARR Is 20% per year. Use factors to determine if the company should purchase the equipment under any of the AOC scenarios. The AW value for the optimistic scenario is $- and the company should make O the parts for the optimistic scenario The AW value for the most likely scenario is $- and the company should makeO the parts for the most likely scenario The AW value for the pessimistic scenario is $- and the company should purchase the parts for the pessimistic scenario
Question Content Area A used machine with a purchase price of $36,814, requiring an overhaul costing $9,591, installation costs of $6,837, and special acquisition fees of $34,674, would have a cost basis of a.$139,018 b.$87,916 c.$36,814 d.$46,405
A My Home * CengageNoWv2 | Online teachin X enow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator-&inpro.. *** Average Rate of Return, Cash Payback Period, Net Present Value Method for a Service Company Spanish Peaks Railroad Inc, is considering acquiring equipment at a cost of $215,000, The equipment has an estimated life of 10 years and no residual value. It is expected to provide yearly net cash flows of $43,000. The company's minimum desired rate of return for net present value analysis is 10%. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1. 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 4.212 3.791 3.605 3.353 2.991 4.917 4.355 4.111 3.785 3.326 7. 5.582 4.868 4ర 4.160 3.605 6.210 5.335 4.968 4.487 3.837 6.802 5.759 5.328 4.772 4.031 6.145 5.650 5.019 4.192 10 7.360 Compute the following: a. The average rate of return, giving effect to…