Oaktree Company purchased new equipment and made the following expenditures:
Purchase price $ 64,000
Sales tax 4,100
Freight charges for shipment of equipment 890
Insurance on the equipment for the first year 1,090
Installation of equipment 2,900
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.
Required:
Prepare the necessary journal entries to record the above expenditures. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
1) Record the purchase of equipment
2) Record any expenditures not capitalized in the purchase of equipment
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Oaktree Company purchased new equipment and made the following expenditures: Purchase price $ 64,000 Sales tax 4,100 Freight charges for ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Are Safety and health programs are mandatory for all general induatry businesses
Answers (2)
A system of exchange that involves exchanging one set of goods for another is
Answers (1)
2. If the market interest rate is 7%, the bonds will issue at $418,022. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021.
Answers (1)
Our company sold merchandise on account with a cost of $700 for $1,000. Our company uses a perpetual inventory system. What account and amount would we credit to record the sales revenue?
Answers (1)
Holly took a prospective client to dinner, and after agreeing to a business deal, they went to the theater. Holly paid $350 for the meal and separately paid $226 for the theater tickets, amounts that were reasonable under the circumstances.
Answers (1)
New Questions in Business
Which of the following statements is true of resistance to change? Select one: A. Overt resistance is less important to an organization than is covert resistance. 0 B. Resistance has emotional, cognitive, and behavioral components. 0 C.
Answers (1)
A local kayak outfitter has been looking over the latest data from the Census, which reported that income in the area where the outfitter is based has increased by 20%.
Answers (2)
What is the objective of the last step in the ethical decision-making framework? Multiple Choice to brainstorm any alternative courses of action to weigh the various alternatives and choose a course of action to identify the issue to gather facts
Answers (1)
Suppose an investment of 10,000 doubkes in value every 13 years. how much is the investment
Answers (1)
A customer makes a small order, you deliver the goods, and he pays by check. The check clears. He makes another small order, you deliver, and he pays by check. The check clears again. The pattern goes on for several weeks.
Answers (1)