Kelly Melnik owns and operates Aaladin Print Co. During July, Aaladin Print Co. incurred the…

Kelly Melnik owns and operates Aaladin Print Co. During July, Aaladin Print Co. incurred

the following costs in acquiring two printing presses. One printing press was new, and the

other was used by a business that recently filed for bankruptcy.

Costs related to new printing press:

1. Sales tax on purchase price

2. Insurance while in transit

3. Freight

4. Special foundation

5. Fee paid to factory representative for installation

6. New parts to replace those damaged in unloading

Costs related to used printing press:

7. Fees paid to attorney to review purchase agreement

8. Installation

9. Repair of vandalism during installation

10. Replacement of worn-out parts

11. Freight

12. Repair of damage incurred in reconditioning the press

a. Indicate which costs incurred in acquiring the new printing press should be debited to

the asset account.

b. Indicate which costs incurred in acquiring the used printing press should be debited

to the asset account.

 

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