Exercise 7-2A Record purchase of equipment (LO7-1) Orion Flour Mills purchased a new machine and made the following expenditures: Purchase price $74,000 5,950 Sales tax Shipment of machine Insurance on the machine for the first year Installation of machine 990 690 1,980 The machine, including sales tax, was purchased on account, with payment due in 30 days. The other expenditures lis paid in cash. Required: Record the above expenditures for the new machine. (If no entry is required for a particular transaction/event, select Entry Required" in the first account field.)
Exercise 7-2A Record purchase of equipment (LO7-1) Orion Flour Mills purchased a new machine and made the following expenditures: Purchase price $74,000 5,950 Sales tax Shipment of machine Insurance on the machine for the first year Installation of machine 990 690 1,980 The machine, including sales tax, was purchased on account, with payment due in 30 days. The other expenditures lis paid in cash. Required: Record the above expenditures for the new machine. (If no entry is required for a particular transaction/event, select Entry Required" in the first account field.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:**Exercise 7-2A: Record Purchase of Equipment (LO7-1)**
Orion Flour Mills purchased a new machine and made the following expenditures:
- **Purchase price**: $74,060
- **Sales tax**: $5,905
- **Shipment of machine**: $990
- **Insurance on the machine for the first year**: $610
- **Installation of machine**: $1,980
The machine, including sales tax, was purchased on account with payment due in 30 days. The other expenditures listed above were paid in cash.
**Required**: Record the above expenditures for the new machine. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
- **View Transaction List**
- **Journal Entry Worksheet**

Transcribed Image Text:### Journal Entry Task
#### Instructions:
The machine, including sales tax, was purchased on account, with payment due in 30 days. The other expenditures listed above were paid in cash.
**Required:**
- Record the above expenditures for the new machine. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
---
#### Journal Entry Worksheet:
1. **Task:**
- Record the expenditures for the new machine.
**Note:** Enter debits before credits.
| Transaction | General Journal |
|-------------|------------------|
| 1 | |
#### Additional Features:
- There is a button labeled "View transaction list" to help access previous entries.
---
This educational website module is focused on teaching students how to accurately input journal entries in accounting, emphasizing the correct sequence of entering debits before credits.
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