Shipping costs!ories purchased a high-speed indistnalconrifug… cost of S420,00e

Question

Shipping costs!ories purchased a high-speed indistnalconrifug… cost of S420,00e centrifuge at a cost of $ cost of $3,000. Labor $15,000. A new concrete foundation was buils to house the 8,000, An additional water line had to be run to the equipmvent at a is:br and testing costs totaled $9,000. The capitalized cost for the costs a. $455,000 b. $446,000 $437,000 d. $435,000 Volcom Inc. has provided the following information regarding its receivables: Accounts receivables written off as uncollectible during the year amounted to $11,500 The Accounts Receivable halance at the beginning of the year was Sls The Accounts Receivable balance at the end of t The Allowance for Uncollectible Accounts balance. the beginning of the year was $14,000 . . · the year was $210,000 The Allowance for Uncollectible Accounts balance at the end of the year after the recording of bad debt expense was $12,900 Credit sales during the year totaled $900,000 * How much cash was received from collections of Accounts Receivable? a. $690,000 b. $701,500 c. $828,500 d. $888,500 Discount Warehousehouse Corp. purchased a one-year fi 2016, and recorded the entire $8,400 premium payment to the Prepaid Insurance Account. When preparing its December 31, 2016 financial statements, Discount Warehouse Corp, must record which of the following adjusting entries to correctly account for the insurance premium? re insurance policy on August 1, a. Insurance Expense 3,500 b. Prepaid Insurance 3,500 c. Insurance Expense 3,500 d. Insurance Payable 3,500 3,500 Prepaid Insurance Insurance Expense Insurance Payable Prepaid Insurance 3,500 3,500 Page 8

Explanation / Answer

Answer 1-a. $455,000 Capitalized Cost for the centrifuge is: Cost of Cebtrifuge          420,000 Shipping Costs            15,000 Cost of foundation              8,000 Water Line Cost              3,000 Labor & Testing Cost              9,000 Total Capitalized Cost          455,000 Answer 2-c. $828,500 Accounts Receivables To Balance B/F          150,000 By Amt - Written Off               11,500 To Credit Sales          900,000 By Cash (Bal Fig.)             828,500 By Balance C/F             210,000      1,050,000         1,050,000 Answer 3-a. Journal Entry to be Passed on Dec-31: Insurance Exp.                                Dr.              3,500 $8,400 X 5/12    To Prepaid Insurance                                      3,500

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