Equipment was purchased for $83000on January 2, 2022. Freight charges amounted to $2000and there was a cost of $10000for building a foundation and installing the equipment. The company purchased a special insurance policy for the equipment with a monthly premium of $500. Use the following tabular analysis to record these expenditures assuming that all payments were made in cash.

Assets

=

Liabilities

+

Stockholders' Equity

Accumulated

Common

Retained Earnings

Cash

+

Equipment

-

Depreciation

=

+

Stock

+

Rev.

-

Exp.

-

Div.

JAN 2

A-Increase Equipment $95000, increase Insurance Expense $500 and decrease Cash $95500.

B-Increase Equipment $83000, decrease Accumulated Depreciation $12000, increase Insurance Expense $500and decrease Cash $83500.

C-Increase Equipment $93000, increase Freight Expense $2000, increase Insurance Expense $500and decrease Cash $95500.

D-Increase Equipment $83000and decrease Cash $83000.