Exercise 7-2A Record purchase of equipment (LO7-1)Orion Flour Mills purchased a new machine and made the following expenditures:Purchase priceSales taxed$74,0005,950Shipment of machineInsurance on the machine for the first yearInstallation of machine990690ok1,980The machine, including sales tax, was purchased on account, with payment due in 30 days. The other expenditures listed above werepaid in cash.Required:Record the above expenditures for the new machine. (If no entry is required for a particular transaction/event, select "No JournalEntry Required" in the first account field.)View transaction listJournal entry worksheetawNext >e here to searchDesigned by Apple in CaliformiaAssembled in China 1,980The machine, including sales tax, was purchased on account, with payment due in 30 days. The other expenditures listed above werepaid in cash.Required:Record the above expenditures for the new machine. (If no entry is required for a particular transaction/event, select "No JournalEntry Required" in the first account field.)View transaction listJournal entry worksheet<.Record the expenditures for the new machine.Note: Enter debits before credits.TransactionGeneral JournalNext >e to searchDesigned by Apple in CaliforniaAssembled in China

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Exercise 7-2A Record purchase of equipment (LO7-1) Orion Flour Mills purchased a new machine and made the following expenditures: Purchase price $74,000 5,950 Sales tax Shipment of machine Insurance on the machine for the first year Installation of machine 990 690 1,980 The machine, including sales tax, was purchased on account, with payment due in 30 days. The other expenditures lis paid in cash. Required: Record the above expenditures for the new machine. (If no entry is required for a particular transaction/event, select Entry Required" in the first account field.)

Exercise 7-2A Record purchase of equipment (LO7-1) Orion Flour Mills purchased a new machine and made the following expenditures: Purchase price $74,000 5,950 Sales tax Shipment of machine Insurance on the machine for the first year Installation of machine 990 690 1,980 The machine, including sales tax, was purchased on account, with payment due in 30 days. The other expenditures lis paid in cash. Required: Record the above expenditures for the new machine. (If no entry is required for a particular transaction/event, select Entry Required" in the first account field.)

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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Steele Corp. purchases equipment for $25,000. Regarding the purchase, Steele recorded the following transactions: Paid shipping of $1,000 Paid installation fees of $2,000 Pays annual maintenance cost of $200 Received a 5% discount on $25,000 sales price Determine the acquisition cost of the equipment.
Ngo Company purchased a truck for $54,000. Sales tax amounted to $5,400; shipping costs amounted to $1,200; and one-year registration of the truck was $100. What is the total amount of costs that should be capitalized? A. $60,600 B. $66,100 C. $54,000 D. $59,400
Orion Flour Mills purchased a new machine and made the following expenditures: Purchase price $ 66,000 Sales tax 5,550 Shipment of machine 910 Insurance on the machine for the first year 610 Installation of machine 1,820 The machine, including sales tax, was purchased on account, with payment due in 30 days. The other expenditures listed above were paid in cash. Required: Record the above expenditures for the new machine. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
9. ABC Company purchased a machine on December 1, 20X1 at an invoice price of 4, 500, 000 with terms 2/10, n/30. On December 10, 20X0, ABC paid the required amount for the machine. On December 1, 20X0, ABC paid 80, 000 for delivery of the machine and on December 31, 20X0, it paid 310, 000 for installation and testing of the machine. The machine was ready for use on January 1, 20X1. It was estimated that the machine would have a useful life of 5 years and a residual value of 800, 000. Engineering estimates indicated that the useful life in productive units was 200, 000. Units actually produced during the first 2 years were 30, 000 in 20X1 and 48, 000 in 20X2. ABC Company decided to use the output method of depreciation. What is the depreciation of the machine for 20X2?
Oaktree Company purchased new equipment and made the following expenditures:Purchase price $45,000Sales tax 2,200Freight charges for shipment of equipment 700Insurance on the equipment for the first year 900Installation of equipment 1,000The equipment, including sales tax, was purchased on open account, with payment due in 30 days. The otherexpenditures listed above were paid in cash.Required:Prepare the necessary journal entries to record the above expenditures.