CONGRATULATIONS Company recently acquired two items of equipment. • Acquired a press at an invoice price of P2,000,000 subject to a 5% cash discount which was taken. Cost of freight and insurance during shipment were P150,000 and installation cost amounted to P100,000. • Acquired a welding machine at an invoice price of P3,000,000 subject to a 10% cash discount which was not taken. Additional welding supplies were acquired at a cost of P100,000. What amount should be reported as total increase in the equipment account as a result of the transactions?

CONGRATULATIONS Company recently acquired two items of equipment. • Acquired a press at an invoice price of P2,000,000 subject to a 5% cash discount which was taken. Cost of freight and insurance during shipment were P150,000 and installation cost amounted to P100,000. • Acquired a welding machine at an invoice price of P3,000,000 subject to a 10% cash discount which was not taken. Additional welding supplies were acquired at a cost of P100,000. What amount should be reported as total increase in the equipment account as a result of the transactions?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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