Yockey HVAC purchased a delivery truck. The total cash payment was 28,220 including the following items. Negotiated
Question:
Yockey HVAC purchased a delivery truck. The total cash payment was £28,220 including the following items.
Negotiated purchase price..................................£24,000
Installation of special shelving ...............................1,200
Painting and lettering .................................................780
Motor vehicle license .................................................140
Annual insurance policy ............................................800
Sales tax ...................................................................1,300
Total paid .............................................................£28,220
Explain how each of these costs would be accounted for.
Step by Step Answer:
Accounting Principles
ISBN: 978-1119419617
IFRS global edition
Authors: Paul D Kimmel, Donald E Kieso Jerry J Weygandt