Following information is available for the purchase of equipment by ABC company:   10 Computers and peripheral equipment purchased cash at $25,500. Installation service cost paid at $1350. Freight- in was paid at $550.     Journal entry to record the cost of equipment will be: Select one: a. Dr Equipment 27,400 -  Cr Cash 27,400 b. Dr Office Equipment 25,500 , Cr Installation expense 1350 , Cr Freight expense 550,  Cr Cash 23,600 c. Dr Office Equipment 25,500 , Dr Installation expense 1350 , Cr Freight expense 550,  Cr Cash 26,300 d. Dr Cash 25,500 - Cr Equipment 25,500

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Following information is available for the purchase of equipment by ABC company:

 

  • 10 Computers and peripheral equipment purchased cash at $25,500.
  • Installation service cost paid at $1350.
  • Freight- in was paid at $550.

 

 

Journal entry to record the cost of equipment will be:

Select one:
a. Dr Equipment 27,400 -  Cr Cash 27,400
b. Dr Office Equipment 25,500 , Cr Installation expense 1350 , Cr Freight expense 550,  Cr Cash 23,600
c. Dr Office Equipment 25,500 , Dr Installation expense 1350 , Cr Freight expense 550,  Cr Cash 26,300
d. Dr Cash 25,500 - Cr Equipment 25,500
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