A company purchased for cash a computer system with a list price of $120,000. The system was shipped FOB shipping point at a cost of $6,000. Installation and testing of the system cost $4,500. What is the recorded acquisition cost of the computer system?

A company purchased for cash a computer system with a list price of $120,000. The system was shipped FOB shipping point at a cost of $6,000. Installation and testing of the system cost $4,500. What is the recorded acquisition cost of the computer system?

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter18: Accounting For Long-term Assets

Section: Chapter Questions

Problem 5CE: Prepare journal entries for the following transactions: a. A machine with a cost of 10,000 and...

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