Voiture Company manufactures compact, energy-efficient cars. On April 1, it purchased a machine for its assembly line at a contract price of $400,000 with terms of 2/10, n/30. Voiture paid the contract price on April 8 and also incurred installation and transportation costs of $5,000, sales tax of $32,000, and testing costs of $2,000. During testing, the machine was accidentally damaged, so the company had to pay $1,000 to repair it.

Required:

Prepare the journal entry to record the acquisition of the machine. Use April 30 to record a summary entry for transactions that would have been made during the month. Assume all costs have been paid.

1 2 3 DATE Apr. 30 Machine GENERAL JOURNAL ACCOUNT TITLE Repair and Maintenance Expense Cash POST. REF. DEBIT Score: 24/37 CREDIT