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ABC Co purchased an equipment from Hongkong for P100,000. Additional cost included the following: Broker's commission P5,000 Import duties P30,000 Freight on purchase P1,000 Installation cost P3,500 Testing of equipment prior to use P5,000 Promotion and advertising cost of the new product to be processed in using the new equipment, P8,000 Samples generated from testing the equipment were sold for P500.   The entry related to the above transaction will include:   Cr Cash 144,500 Dr Selling Expenses 8,000 Dr Equipment 152,000 Cr Sales 500

ABC Co purchased an equipment from Hongkong for P100,000. Additional cost included the following: Broker's commission P5,000 Import duties P30,000 Freight on purchase P1,000 Installation cost P3,500 Testing of equipment prior to use P5,000 Promotion and advertising cost of the new product to be processed in using the new equipment, P8,000 Samples generated from testing the equipment were sold for P500.   The entry related to the above transaction will include:   Cr Cash 144,500 Dr Selling Expenses 8,000 Dr Equipment 152,000 Cr Sales 500

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 5EA: Steele Corp. purchases equipment for $25,000. Regarding the purchase, Steele recorded the following...
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ABC Co purchased an equipment from Hongkong for P100,000. Additional cost included the following:

Broker's commission P5,000

Import duties P30,000

Freight on purchase P1,000

Installation cost P3,500

Testing of equipment prior to use P5,000

Promotion and advertising cost of the new product to be processed in using the new equipment, P8,000

Samples generated from testing the equipment were sold for P500. 

 The entry related to the above transaction will include:

 

Cr Cash 144,500

Dr Selling Expenses 8,000

Dr Equipment 152,000

Cr Sales 500

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