a. Katen Company purchases a machine with a purchase price of $200,000 on terms of 2/10,...
a. Katen Company purchases a machine with a purchase price of $200,000 on terms of 2/10, n/30. Katen pays within the discount period and incurs freight-in costs of $1,500 and installation and testing costs of $6,000. Katen insures the machine for the first year of its use for $2,800.
Required: Prepare the journal entry to record the acquisition of the machine.
Homework Answers
| Accounts Title | Dr | Cr |
| Machinery (200000*98%)+1500+6000 | 203500 | |
| Cash | $203,500 | |
| (being acquisition of machinery recorded) | ||
| If any doubt please comment | ||
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a. Katen Company purchases a machine with a purchase price of
$200,000 on terms of 2/10,...
Katen Company purchases a machine with a purchase price of $200,000 on terms of 2/10, n/30....
Katen Company purchases a machine with a purchase price of $200,000 on terms of 2/10, n/30. Katen pays within the discount period and incurs freight-in costs of $1,500 and installation and testing costs of $6,000. Katen insures the machine for the first year of its use for $2,800. Required: Prepare the journal entry to record the acquisition of the machine.
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