Prepare the journal entries to record each of the transactions 1 through 6 as of the date of occurrence. Note: Round answers to the nearest whole dollar. 1. On January 1, new equipment is purchased with a list price of $30,000. The company did not take advantage of a 1% cash discount available upon full payment of the invoice within 10 days. Shipping costs paid by the seller were $100. Installation costs are $400, representing 10% of the monthly salary of the manager ( installation took two days). A wall is moved two feet at a cost of $800 to make room for the equipment. Cash discounts not taken are considered interest expense. 2. During January, the rst month of operations, the newly purchased equipment became inoperative due to a defect. The seller repaired the equipment at no cost; however, the specially trained operator was idle during the week the machine was inoperative. The operator was paid regular wages ( $650) during the period, although the only work performed was to observe the repair by the factory representative. Hint: Choose your debit answer from accounts Equipment and Manufacturing Overhead. 3. On January 1, the company bought xtures with a

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To record each of the transactions 1 through 6 we will prepare the necessary journal entries 1 On Ja... View the full answer