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Lerok [7]
3 years ago
8

Oaktree Company purchased new equipment and made the following expenditures:

Business
1 answer:
const2013 [10]3 years ago
4 0

Answer:

                                  Cr.          Dr.

Equipment            $66,880

Account Payable                  $62,600

Cash                                      $4,280

Explanation:

All the costs incurred to make asset usable should be capitalised.

Equipment Cost = Purchase Price + Sales Tax + Freight Charges + Insurance Charges + Installation

Equipment Cost = $59,000 + $3,600 + $840 + $1,040 + $2,400

Equipment Cost = $66,880

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