Homework answers / question archive / Oaktree Company purchased new equipment and made the following expenditures: Purchase Price $45,000   Sales Tax $2,200   Freigh Charges for shipment of machine $700   Insurance on machine for 1st yr $900   Installation of machine $1,000   The Equipment, including sales tax, was purchase on open account, with payment due in 30 days

Oaktree Company purchased new equipment and made the following expenditures: Purchase Price $45,000   Sales Tax $2,200   Freigh Charges for shipment of machine $700   Insurance on machine for 1st yr $900   Installation of machine $1,000   The Equipment, including sales tax, was purchase on open account, with payment due in 30 days

Accounting

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Oaktree Company purchased new equipment and made the following expenditures:

The Equipment, including sales tax, was purchase on open account, with payment due in 30 days. The other expenditures listed above were paid in cash.

REQUIRED:

Prepare the necessary journal entries to record the aboce expenditures.