Oaktree Company purchased new equipment and made the following expenditures: The

Question

Oaktree Company purchased new equipment and made the following expenditures:

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.)

Journal entry worksheet

Record the purchase of equipment.

Note: Enter debits before credits.

Journal entry worksheet

Record any expenditures not capitalized in the purchase of equipment.

Note: Enter debits before credits.

Purchase price $ 51,000 Sales tax 2,800 Freight charges for shipment of equipment 760 Insurance on the equipment for the first year 960 Installation of equipment 1,600

Journal entry worksheet

Record the purchase of equipment.

Note: Enter debits before credits.

Event General Journal Debit Credit 1

Journal entry worksheet

Record any expenditures not capitalized in the purchase of equipment.

Note: Enter debits before credits.

Event General Journal Debit Credit 2

Explanation / Answer

Journal entry

Event account and explanation debit credit 1 Equipment 56160 Account payable 53800 Cash 2360 (To record purchase) 2 Insurance expense 960 Cash 960 (To record expense)

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.