treytre
Feb 26, 2008, 11:26 PM
I am so stuck! I have spent hours trying to find an
Example in my book or on the internet.
Here is the question.
I have to prepare a journal entry to record the
Machine's purchase and the costs to ready and install
It. Cash is paid for all costs incurred.
Calhoon purchases a used machine for $167.000 cash on
January 2 and readies it for use the next day at a
$3,420 cost. On January 3, it is installed on a
Required operating platform costing $1080, and it is
Readied for operation.
I know the total cost will be $171,500
Do I just put one Cash with this total for the credit?
How do I do the journal for the machine, readying and
Installing on a operating platform? Is it all one
Journal entry?
When it posts to a ledger it will all go to machine expense,which is why I think I only need one journal entry for all three purchases.
I know we are suppose to try for an answer so here is what I think I should do.
Machine expense debit $167,000
Machine expense Ready machine for use debit $3420
Machine expense install on platform debit $1,080
Cash credit $171,500
To record buying machine and getting it ready for use
Thank you in advance for your help!
Connie
Example in my book or on the internet.
Here is the question.
I have to prepare a journal entry to record the
Machine's purchase and the costs to ready and install
It. Cash is paid for all costs incurred.
Calhoon purchases a used machine for $167.000 cash on
January 2 and readies it for use the next day at a
$3,420 cost. On January 3, it is installed on a
Required operating platform costing $1080, and it is
Readied for operation.
I know the total cost will be $171,500
Do I just put one Cash with this total for the credit?
How do I do the journal for the machine, readying and
Installing on a operating platform? Is it all one
Journal entry?
When it posts to a ledger it will all go to machine expense,which is why I think I only need one journal entry for all three purchases.
I know we are suppose to try for an answer so here is what I think I should do.
Machine expense debit $167,000
Machine expense Ready machine for use debit $3420
Machine expense install on platform debit $1,080
Cash credit $171,500
To record buying machine and getting it ready for use
Thank you in advance for your help!
Connie