This topic contains a solution. Click here to go to the answer

Author Question: Able Baker Company incurred the following expenditures for the purchase and use of a machine for the ... (Read 776 times)

corkyiscool3328

  • Hero Member
  • *****
  • Posts: 539
Able Baker Company incurred the following expenditures for the purchase and use of a machine for the company's factory in Puerto Rico.
 
  Required: Put an X in the appropriate box to indicate which expenditures should be capitalized and which should be expensed:
 
  Expenditure Capitalize Expense
  60,000 invoice price of the machine
  3,000 transportation costs for the machine
  1,400 for inspection of the machine
  1,000 for moving and handling the machine
  3,500 for installation of the machine
  2,200 for testing the machine
  12,000 in power costs for the year to operate the machine
  2,000 for ordinary repairs and maintenance on the
  machine for the year
  4,000 for an overhaul to make the machine run more
  efficiently

Question 2

When using the percent of sales method of estimating uncollectibles the entry to record bad debt expense includes acredit to Accounts Receivable.
 a. True
  b. False
 
   Indicate whether the statement is true or false



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

tsternbergh47

  • Sr. Member
  • ****
  • Posts: 311
Answer to Question 1

Expenditure Capitalize Expense
60,000 invoice price of the machine X
3,000 transportation costs for the machine X
1,400 for inspection of the machine X
1,000 for moving and handling the machine X
3,500 for installation of the machine X
2,200 for testing the machine X
12,000 in power costs for the year to operate the machine X
2,000 for ordinary repairs and maintenance on the
machine for the year X
4,000 for an overhaul to make the machine run more
efficiently X

Answer to Question 2

False




corkyiscool3328

  • Member
  • Posts: 539
Reply 2 on: Jul 5, 2018
:D TYSM


brbarasa

  • Member
  • Posts: 308
Reply 3 on: Yesterday
Excellent

 

Did you know?

According to the National Institute of Environmental Health Sciences, lung disease is the third leading killer in the United States, responsible for one in seven deaths. It is the leading cause of death among infants under the age of one year.

Did you know?

Bacteria have flourished on the earth for over three billion years. They were the first life forms on the planet.

Did you know?

The shortest mature adult human of whom there is independent evidence was Gul Mohammed in India. In 1990, he was measured in New Delhi and stood 22.5 inches tall.

Did you know?

In the United States, there is a birth every 8 seconds, according to the U.S. Census Bureau's Population Clock.

Did you know?

Hyperthyroidism leads to an increased rate of metabolism and affects about 1% of women but only 0.1% of men. For most people, this increased metabolic rate causes the thyroid gland to become enlarged (known as a goiter).

For a complete list of videos, visit our video library