A)

Nike purchases a machine for $12,500, terms 2/10, n/60, FOB shipping point. Nike paid within the discount period and took the $250 discount. Transportation costs of $360 were paid by Nike. The machine required mounting and power connections costing $895. Another $475 is paid to assemble the machine and $40 of materials are used to get it into operation. During installation, the machine was damaged and $180 worth of repairs were made. Calculated the total cost to be recorded

B)

Reebok purchased land for $390,000 as part of its plans to build a new plant. The company pays $33,500 to tear down an old building on the lot the and $47,000 to fill and level the lot. It also pays construction costs of $1,452,200 for the new building and $87,800 for lighting and paving a parking area. Prepare a single Journal entry to record these costs incurred by Reebok, all of which are paid in cash.