Bolt Company purchased a machine for use in its operations thathad an invoice price of $80,000 excluding sales tax. A 4% sales taxwas levied on the sale. Terms were net 30. The company estimatedthe total cost of hauling the machine from the dealerâs warehouseto the companyâs plant at $5,600, which did not include a fine of$1,600 for failure to secure the necessary permits to use citystreets in transporting the machine. In delivering the machine toits plant, a Bolt employee damaged the truck used; repairs cost$3,600. The machine was also slightly damaged with repair costsamounting to $1,600. Bolt incurred installation costs of $32,000that included the $4,000 cost of shoring up the floor under themachine. Testing costs amounted to $2,400. Safety guards wereinstalled on the machine at a cost of $640, and the machine wasplaced in operation. imageRequired Prepare a schedule showing theamount at which the machine should be recorded in Boltâsaccounts.
Bolt Company purchased a machine for use in its operations thathad an invoice price of $80,000 excluding sales tax. A 4% sales taxwas levied on the sale. Terms were net 30. The company estimatedthe total cost of hauling the machine from the dealerâs warehouseto the companyâs plant at $5,600, which did not include a fine of$1,600 for failure to secure the necessary permits to use citystreets in transporting the machine. In delivering the machine toits plant, a Bolt employee damaged the truck used; repairs cost$3,600. The machine was also slightly damaged with repair costsamounting to $1,600. Bolt incurred installation costs of $32,000that included the $4,000 cost of shoring up the floor under themachine. Testing costs amounted to $2,400. Safety guards wereinstalled on the machine at a cost of $640, and the machine wasplaced in operation. imageRequired Prepare a schedule showing theamount at which the machine should be recorded in Boltâsaccounts.
