On December 1, 2017, Hogan Co. purchased equipment From WeeSellEquipment (WSE) invoiced for $400,000. Not including...

On December 1, 2017, Hogan Co. purchased equipment From WeeSellEquipment (WSE) invoiced for $400,000. Not including the following:

Sales Tax (to be paid to the WSE) $40,000

Shipping (to be paid to FedEx) 10,000

Concrete slab necessary for equipment (to be paid to ABC) 30,000

Cash paid for 12 month prepaid maintenance concrete 12,000

Prepare Journal Entry

Expert Solution

Equipment Cost=400000+10000+30000+40000
=$480,000
no	Account Title	Debit($)	Credit($)
1	Equipment	4,80,000
	FedEx(Shipping Exps)		10,000
	ABC		30,000
	WeeSellEquipment(WSE)(400,000+40,000)		4,40,000
	( To record purchase purchased equipment )

2	Prepaid Maintenance	12000
	Cash		12000
	( To record the Prepaid Maintenance charges paid in cash )

ekkarill92 answered 7 months ago

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