Rochester Flour Mills purchased new equipment and made the following expenditures: Purchase price Sales tax $ 59,000 5,200 Shipment of equipment 840 Insurance on the equipment for the first year Installation of equipment 540 1,680 Required: Determine the financial statement effects of the above expenditures for the new equipment. All expenditures were paid in cash. Note: Amounts to be deducted should be indicated by a minus sign. Assets Balance Sheet Liabilities Stockholders' Equity Common Stock Retained Earnings Revenues Income Statement Net Expenses Income

Rochester Flour Mills purchased new equipment and made the following expenditures: Purchase price Sales tax $ 59,000 5,200 Shipment of equipment 840 Insurance on the equipment for the first year Installation of equipment 540 1,680 Required: Determine the financial statement effects of the above expenditures for the new equipment. All expenditures were paid in cash. Note: Amounts to be deducted should be indicated by a minus sign. Assets Balance Sheet Liabilities Stockholders' Equity Common Stock Retained Earnings Revenues Income Statement Net Expenses Income

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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