Oso5684
Jan 6, 2009, 12:20 PM
QUESTION 1
Dec 13. Purchased accessory items for inventory on credit from Fastwinn Inc. The cash terms are 2/10, n/30, the purchase invoice number 44777, and the goods are shipped FOB shipping point. Net purchase price for the merchandise is $646.80, added freight charges $63.50 and the final net amount of the invoice totals $710.30
Merchandise listed on the purchase invoice:
Item: Micro Windshield Qty: 8 Net cost per unit: $44.10
Item: Snowmobile cover Qty: 5 Net cost per unit: $58.80
Freight Charges added to the invoice: $63.50
QUESTION 2
Dec13. Instead of repairing the heavy duty shop hoist at a cost $1,955 and charging this cost to an operating expense account, the hoist, which has one year remaining in its estimated useful life, is completely overhauled at a cost of $3600. This overhaul will extend the useful life of the hoist to four years.
QUESTION 3
Dec 14. Sold six Swift snowmobile and six batteries to the Colfax Sno Katts for $50,094 plus sales tax (6%). The club presented a certified check as payment in full for their new equipment.
Merchandise listed on the sales invoice:
Item: Swift Arrow Qty: 1 Net cost per unit: $9900
Item: Swift Enduro Qty: 5 Net cost per unit: $5940
Item: Super Charger Qty: 6 Net cost per unit: $49.50
Dec 13. Purchased accessory items for inventory on credit from Fastwinn Inc. The cash terms are 2/10, n/30, the purchase invoice number 44777, and the goods are shipped FOB shipping point. Net purchase price for the merchandise is $646.80, added freight charges $63.50 and the final net amount of the invoice totals $710.30
Merchandise listed on the purchase invoice:
Item: Micro Windshield Qty: 8 Net cost per unit: $44.10
Item: Snowmobile cover Qty: 5 Net cost per unit: $58.80
Freight Charges added to the invoice: $63.50
QUESTION 2
Dec13. Instead of repairing the heavy duty shop hoist at a cost $1,955 and charging this cost to an operating expense account, the hoist, which has one year remaining in its estimated useful life, is completely overhauled at a cost of $3600. This overhaul will extend the useful life of the hoist to four years.
QUESTION 3
Dec 14. Sold six Swift snowmobile and six batteries to the Colfax Sno Katts for $50,094 plus sales tax (6%). The club presented a certified check as payment in full for their new equipment.
Merchandise listed on the sales invoice:
Item: Swift Arrow Qty: 1 Net cost per unit: $9900
Item: Swift Enduro Qty: 5 Net cost per unit: $5940
Item: Super Charger Qty: 6 Net cost per unit: $49.50