Question

-Prepare the journal entries for these events -Post to t-accounts -Find the total cost of the...

-Prepare the journal entries for these events

-Post to t-accounts

-Find the total cost of the equipment

*A company purchased equipment paying $3000 cash.

*The equipment was shipped to the company for $400 cash.

*The company added additional lights to be able to use the equipment.

*The cost of the additional lighting was $500 cash.

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Homework Answers

Answer #1
Journal

Equipment dr.

To Cash

(Equipment purchased for cash)

3,000

.

3,000

Equipment dr.

To Cash

(Transport cost for equipment)

400

.

400

Equipment dr.

To Cash

(Additional cost of lights to make Equipment operatable)

500

.

500

.

All the cost incurred for an asset to make it ready to use is added to its value. Therefore, Transportation costs and Additional lights cost has been added to the value of Equipment.

.

Equipment Account
To Cash 3,000
To Cash 400
To Cash 500
By Balance 3,900
3,900 3,900

.

Cost of Equipment: $3,900

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