Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. oriole company purchased equipment on account on s

Oriole Company purchased equipment on account on September 3, 2019, at an invoice price of...

90.2K

Verified Solution

Question

Accounting

Oriole Company purchased equipment on account on September 3, 2019, at an invoice price of $195,000. On September 4, 2019, it paid $4,800 for delivery of the equipment. A one-year, $1,970 insurance policy on the equipment was purchased on September 6, 2019. On September 20, 2019, Oriole paid $3,200 for installation and testing of the equipment. The equipment was ready for use on October 1, 2019.

Oriole estimates that the equipment's useful life will be four years, with a residual value of $13,500. It also estimates that, in terms of activity, the equipment's useful life will be 94,750 units. Oriole has a September 30 fiscal year end. Assume that actual usage is as follows:

# of Units Year Ended September 30 15,550 2020 23,850 2021 20,150 2022 36,100 2023

1. STRAIGHT-LINE

2. DOUBLE DIMINISHING BALANCE

3. UNITS OF PRODUCTION

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students