Oaktree Company purchased new equipment and made the following expenditures:

Purchase price	$	63,000
Sales tax		4,000
Freight charges for shipment of equipment		880
Insurance on the equipment for the first year		1,080
Installation of equipment		2,800

The equipment, including sales tax, was purchased on open account, with payment due in 30 days. The other expenditures listed above were paid in cash.

1. Prepare the necessary journal entries to record the above expenditures. a. Record the purchase of equipment. b. Record any expenditures not capitalized in the purchase of equipment.