Question
Oaktree Company purchased new equipment and incurred the following expenses: Purchase price ps 53,000 Sales tax 3,000 Freight charges for equipment shipment 780 Equipment insurance
Oaktree Company purchased new equipment and incurred the following expenses:
Purchase price | ps | 53,000 | |
Sales tax | 3,000 | ||
Freight charges for equipment shipment | 780 | ||
Equipment insurance for the first year | 980 | ||
Installation of equipment | 1,800 | ||
The equipment, including sales tax, was purchased on an open account, due in 30 days. The other expenses listed above were paid in cash.
Required:
Prepare the necessary journal entries to record the above expenses.
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Get StartedRecommended Textbook for
Advanced Financial Accounting
Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay
6th edition
978-0137030385
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