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4 years ago

Orion Flour Mills purchased a new machine and made the following expenditures:

Business

1 answer:

Ede4ka [16]4 years ago

4 0

Answer:

Debit: Machine $75,360

Debit: Insurance $620

Credit: Cash $3,380

Credit: Accounts Payable $72,600

Explanation:

Before the journal is prepared, we have to do some calculations and provide explanation as follows:

Apart from the insurance cost which will be reports as just insurance expenses for the year, all other costs in the questions are relevant costs that will be added together as the costs of the machine equipment as follows:

Machine cost = Purchase price + Sales tax + Machine shipment + Machine Installation

= $67,000 + $5,600 + $920 + 1,840

Machine cost = $75,360

Account payable and cash can also be calculated as follows:

Account payable = Purchase price + Sales tax = $67,000 + $5,600 = $72,600

Cash = Machine shipment + Machine Installation + Machine insurance = $920 + 1,840 + $620 = $3,380

Journal entries

Debit: Machine $75,360

Debit: Insurance $620

Credit: Cash $3,380

Credit: Accounts Payable $72,600

<em>Being the record of purchase of new machine </em>

Note: Also see the journal entries in the attached as a complement to the above.

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2 years ago

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4 years ago

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Assume that the price ceiling is set at 10 million dollars, that the quantity supplied at this price is 2 thousand jet planes, a

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3 years ago

First City Bank pays 9 percent simple interest on its savings account balances, whereas Second City Bank pays 9 percent interest

4vir4ik [10]

Answer:

Future value is $14,944.22

Interest earned is $7444.22

Explanation:

The amount to earn from Second City Bank is the interest that would have been received at the end of the eight years,

In order to determine the amount of interest,it would be nice to first of all compute the future value-the worth of the savings at the end of eight year using the below formula:

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