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

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African Lakes 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: 978-0470533475

9th Edition

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

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