Asset Purchase Cost Assignment

This assignment provides you with practice in determining which costs to include in each asset account. For example, assume a company purchases a piece of equipment for $5,000, pays an additional $200 in shipping costs, $1,300 in installation and calibration costs, and $800 to repair a part that was broken during installation. Which costs are debited to the equipment account? Which other accounts are affected? You will get practice solving this type of problem in this practice set.

Relevant Excel Functions

This assignment will require you to be able to use some or all of the following Excel functions. Click on the hyperlinked section number next to the relevant Excel skill to be directed to a page showing how to perform the assigned task in Excel:

• Cell References (1.5)

• SUMIF Function (1.15)

• SUM Function (1.14)

• Drop-Down Lists (1.10)

• Absolute Cell References (1.1)