Voiture Company manufactures compact, energy-efficient cars. On April 1, it purchased a machine for its assembly line
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Question:
Voiture Company manufactures compact, energy-efficient cars. On April 1, it purchased a machine for its assembly line at a contract price of $400,000 with terms of 2/10, n/30. Voiture paid the contract price on April 8 and also incurred installation and transportation costs of $5,000, sales tax of $32,000, and testing costs of $2,000. During testing, the machine was accidentally damaged, so the company had to pay $1,000 to repair it.
Required:
Prepare the journal entry to record the acquisition of the machine. Use April 30 to record a summary entry for transactions that would have been made during the month. Assume all costs have been paid.
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1337788281
3rd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
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