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In: Accounting

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

Solutions

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 1 year ago
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