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

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Accounting

On December 1, 2017, Hogan Co. purchased equipment FromWeeSellEquipment (WSE) invoiced for $400,000. Not including thefollowing:
Sales Tax (to be paid to theWSE)                                                         $40,000
Shipping (to be paid toFedEx)                                                                 10,000
Concrete slab necessary for equipment (to be paid toABC)                   30,000
Cash paid for 12 month prepaid maintenance concrete                          12,000
Prepare Journal Entry

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3.8 Ratings (463 Votes)

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 )

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Transcribed Image Text

On December 1, 2017, Hogan Co. purchased equipment FromWeeSellEquipment (WSE) invoiced for $400,000. Not including thefollowing:Sales Tax (to be paid to theWSE) $40,000Shipping (to be paid toFedEx) 10,000Concrete slab necessary for equipment (to be paid toABC) 30,000Cash paid for 12 month prepaid maintenance concrete 12,000Prepare Journal Entry