Henley Company purchased a delivery truck. The total cash payment was $27,900, including the following items. Negotiated

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Henley Company purchased a delivery truck. The total cash payment was $27,900, including the following items.

Negotiated purchase price                         $24,000
Installation of special shelving                      1,100
Painting and lettering                                       900
Motor vehicle license                                        100
Annual insurance policy                                   500
Sales tax                                                         1,300 
    Total paid                                               
$27,900 

Explain how each of these costs would be accounted for.

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Accounting Principles

ISBN: 978-0470534793

10th Edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

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