Question Question 7 International Foods Company purchased equipment and incurred the following costs: Cash price W24,000 Sales taxes 1,200 Insurance during transit 200 Installation and testing 400 Total costs W25,800 What amount should be recorded as the cost of the equipment? W25,800 W24,000 W25,400 W25,200 Question 8 Fusser Company purchases a new delivery truck for £35,000. The sales taxes are £2,000. The logo of the company is painted on the side of the truck for £1,200. The truck license is £120. The truck undergoes safety testing for £220 prior to delivery. What does Bailey record as the cost of the new truck? £38,420 £37,000 £36,420 £38,200 Question 9 Ski Quarterly typically sells subscriptions on an annual basis, and publishes four times a year in January, April, July and October. The magazine sells 90,000 subscriptions in January at CHF20 each. What entry is made in January to record the sale of the subscriptions? Cash Unearned Subscription Revenue 1,800,000 1,800,000 Accounts Receivable 1,800,000 Subscription Revenue 1,800,000 Accounts Receivable Unearned Subscription Revenue 1,800,000 1,800,000 Prepaid Subscriptions Cash 1,800,000 1,800,000
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Transcribed Image Text: Question 7 International Foods Company purchased equipment and incurred the following costs: Cash price W24,000 Sales taxes 1,200 Insurance during transit 200 Installation and testing 400 Total costs W25,800 What amount should be recorded as the cost of the equipment? W25,800 W24,000 W25,400 W25,200
Question 8 Fusser Company purchases a new delivery truck for £35,000. The sales taxes are £2,000. The logo of the company is painted on the side of the truck for £1,200. The truck license is £120. The truck undergoes safety testing for £220 prior to delivery. What does Bailey record as the cost of the new truck? £38,420 £37,000 £36,420 £38,200
Question 9 Ski Quarterly typically sells subscriptions on an annual basis, and publishes four times a year in January, April, July and October. The magazine sells 90,000 subscriptions in January at CHF20 each. What entry is made in January to record the sale of the subscriptions? Cash Unearned Subscription Revenue 1,800,000 1,800,000 Accounts Receivable 1,800,000 Subscription Revenue 1,800,000 Accounts Receivable Unearned Subscription Revenue 1,800,000 1,800,000 Prepaid Subscriptions Cash 1,800,000 1,800,000
More Transcribed Image Text: Question 7 International Foods Company purchased equipment and incurred the following costs: Cash price W24,000 Sales taxes 1,200 Insurance during transit 200 Installation and testing 400 Total costs W25,800 What amount should be recorded as the cost of the equipment? W25,800 W24,000 W25,400 W25,200
Question 8 Fusser Company purchases a new delivery truck for £35,000. The sales taxes are £2,000. The logo of the company is painted on the side of the truck for £1,200. The truck license is £120. The truck undergoes safety testing for £220 prior to delivery. What does Bailey record as the cost of the new truck? £38,420 £37,000 £36,420 £38,200
Question 9 Ski Quarterly typically sells subscriptions on an annual basis, and publishes four times a year in January, April, July and October. The magazine sells 90,000 subscriptions in January at CHF20 each. What entry is made in January to record the sale of the subscriptions? Cash Unearned Subscription Revenue 1,800,000 1,800,000 Accounts Receivable 1,800,000 Subscription Revenue 1,800,000 Accounts Receivable Unearned Subscription Revenue 1,800,000 1,800,000 Prepaid Subscriptions Cash 1,800,000 1,800,000
Community Answer
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Ans.7 Correct Option is 25,400. Explanation:  25,400 ( 24,000 +1,200 + 200) Annual Maintenance costs are not considered as part of fixed asset. Only expenses incurred on asset till it is put to use are to be considered as cost of asset. All other costs are not a part of asset. Thus annual maintenance costs must be ignored. Ans.8 Correct Option is £38,420 Explanation: The coat of truck includes the purchase price, the sales tax, painting the logo on the side of the truck, and the safety testing. therefore, £35,000 + £2,000 + £1,200 +  ... See the full answer