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Oliver Company has acquired a used piece of equipment for $10,000 and paid transportation costs of $500. The equipment was damaged immediately after installation, but after it was up and running, which resulted in a $200 repair. The journal entry would be (assuming it was paid in cash): 000

Oliver Company has acquired a used piece of equipment for $10,000 and paid transportation costs of $500. The equipment was damaged immediately after installation, but after it was up and running, which resulted in a $200 repair. The journal entry would be (assuming it was paid in cash): 000

FINANCIAL ACCOUNTING
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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Oliver Company has acquired a used piece of equipment for $10,000 and paid transportation costs of $500. The equipment was damaged immediately after installation, but after it was up and running, which resulted in a $200 repair. The journal entry would be (assuming it was paid in cash): 10,000 Equipment Delivery Expense Repair Expense Cash Cash Delivery Expense Equipment Equipment Cash Equipment Repair Expense Cash 500 200 10,700 10,700 10,500 200 10,700 500 10,200 10,700 10,700
Transcribed Image Text:Oliver Company has acquired a used piece of equipment for $10,000 and paid transportation costs of $500. The equipment was damaged immediately after installation, but after it was up and running, which resulted in a $200 repair. The journal entry would be (assuming it was paid in cash): 10,000 Equipment Delivery Expense Repair Expense Cash Cash Delivery Expense Equipment Equipment Cash Equipment Repair Expense Cash 500 200 10,700 10,700 10,500 200 10,700 500 10,200 10,700 10,700
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