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Al-Eman Company purchased a machine on April 1, 2011, at a cash price of (SR 50,000) Related expenditures are for sales taxes (SR 3,000),
Al-Eman Company purchased a machine on April 1, 2011, at a cash price of (SR 50,000) Related expenditures are for sales taxes (SR 3,000), insurance during shipping (SR 500), and installation and testing (SR 1,000). Required: (a) Compute the cost of new machine. (b) Prepare the journal entry for new machine. Item Amount Cash Price of the machine 501000 Cost of Land GENERAL JOURNAL DATE EXPLANATION PR DEBIT CREDIT
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Financial Reporting and Analysis
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
7th edition
1259722651, 978-1259722653
