Week 6: HomeworkQuestion 1 of 6
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Adama Company incurred the following costs.
Indicate to which account Adama would debit each of the costs.
1.
Sales tax on factory machinery purchased
$5,000
2.
Painting of and lettering on truck immediately upon purchase
3.
Installation and testing of factory machinery
2,000
4.
Real estate broker’s commission on land purchased
3,500
5.
Insurance premium paid for first year’s insurance on new truck
6.
Cost of fence constructed on property purchased
7,200
7.
Cost of paving parking lot for new building constructed
17,900
8.
Cost of clearing, draining, and filling land
13,300
9.
Architect’s fees on self-constructed building
10,000
700
880
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Week 6: Homework
Question 2 of 6
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Suppose during 2025 that Federal Express reported the following information (in millions): net sales of $52,500 and
net income of $125. Its balance sheet also showed total assets at the beginning of the year of $25,000 and total assets
at the end of the year of $25,000.
Calculate the asset turnover and return on assets. ((RRoouunndd aannssw
weerrss ttoo 22 ddeecciim
maall ppllaacceess,, ee..gg.. 66..2255 oorr 66..2255%
%..))
Asset turnover
times
Return on assets
%
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