Acquisition Costs The Voiture Company manufactures compact, energy-efficient cars. On April 1, it purchased a machine for its assembly line at a contract price of $200,000 with terms of 2/10, n/30. The company paid the contract price on April 8 and also incurred installation and transportation costs of $5,000, sales tax of $10,000, and testing costs of $2,000. During testing, the machine was accidentally damaged, so the company had to pay $1,000 to repair it. Required Prepare the journal entry to record the acquisition of the machine
Acquisition Costs The Voiture Company manufactures compact, energy-efficient cars. On April 1, it purchased a machine for its assembly line at a contract price of $200,000 with terms of 2/10, n/30. The company paid the contract price on April 8 and also incurred installation and transportation costs of $5,000, sales tax of $10,000, and testing costs of $2,000. During testing, the machine was accidentally damaged, so the company had to pay $1,000 to repair it. Required Prepare the journal entry to record the acquisition of the machine
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Acquisition Costs The Voiture Company manufactures compact, energy-efficient cars. On April 1, it purchased a machine for its assembly line at a contract price of $200,000 with terms of 2/10, n/30. The company paid the contract price on April 8 and also incurred installation and transportation costs of $5,000, sales tax of $10,000, and testing costs of $2,000. During testing, the machine was accidentally damaged, so the company had to pay $1,000 to repair it.
Required
Prepare the journal entry to record the acquisition of the machine
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