Ghanem Corporation purchased equipment for a cash price of $ 25,000 on February 15, 2018. It paid sales taxes $ 2,750, accident insurance $ 250, fuel for testing the equipment $ 150, salaries for employees $2,000, and insurance during transit for $300. All the costs are paid cash.

The cost of the equipment is: *

$ 28,450

$ 30,450

$ 28,200

$ 27,900

None of the above.

Journal entry for the acquisition of the equipment is: *

Debit Equipment and Credit Account Payable

Debit Cash and Credit Equipment

Debit Equipment and Credit Account Receivable

Debit Equipment and Credit Cash

None of the above.