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Oaktree Company purchased new equipment and made the following expenditures:

Oaktree Company purchased new equipment and made the following expenditures:
 


Purchase price$54,000
Sales tax
3,100
Freight charges for shipment of equipment
790
Insurance on the equipment for the first year
990
Installation of equipment
1,900

 
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.)Annotation 2020-04-12 210930.png

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Intermediate-Accounting-I   
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Homework Answers

✔ Recommended Answer
Answer #1
1 Equipment 59790 =54000+3100+790+1900
      Accounts payable 57100 =54000+3100
       Cash 2690
2 Prepaid insurance 990
       Cash 990
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