The following expenditures relating to plant assets were made by Watkens Company during the first 2 months of 2014. a. Paid $5,000 of accrued taxes at time plant site was acquired.
b. Paid $200 insurance to cover possible accident loss on new factory machinery while the machinery was in transit.
c. Paid $850 sales taxes on new delivery truck.
d. Paid $17,500 for parking lots and driveways on new plant site.
e. Paid $250 to have company name and advertising slogan painted on new delivery truck.
f. Paid $8,000 for installation of new factory machinery.
g. Paid $900 for one-year accident insurance policy on new delivery truck.
h. Paid $75 motor vehicle license fee on the new truck.

Required:
Explain the application of the historical cost principle in determining the acquisition cost of plant assets.

Neveready flashlights inc. needs $317,000 to take a cash discount of 3/15, net 70. a banker will loan the money for 55 days at an interest cost of $13,200. a. what is the effective rate on the bank loan? (use a 360-day year. do not round intermediate calculations. input your answer as a percent rounded to 2 decimal places.) b. how much would it cost (in percentage terms) if the firm did not take the cash discount but paid the bill in 70 days instead of 15 days? (use a 360-day year. do not round intermediate calculations. input your answer as a percent rounded to 2 decimal places.) c. should the firm borrow the money to take the discount? no yes d. if the banker requires a 20 percent compensating balance, how much must the firm borrow to end up with the $317,000? e-1. what would be the effective interest rate in part d if the interest charge for 55 days were $7,200?

Why has the free enterprise system been modified to include some government intervention?

Use the following account numbers and corresponding account titles to answer the following question. account no. account title (1) cash (2) merchandise inventory (3) cost of goods sold (4) transportation-out (5) dividends (6) common stock (7) selling expense (8) loss on the sale of land (9) sales which accounts would appear on the income statement?