O'Connor Company ordered a machine on January 1 at a purchase price of $100,000.
On the date of delivery, January 2, the company paid $25,000 on the machine and signed a long-term note payable for the balance.
On January 3, it paid $1,000 for freight on the machine.
On January 5, O'Connor paid cash for installation costs relating to the machine amounting to $6,000.
On December 31 (the end of the accounting period), O'Connor recorded depreciation on the machine using the straight-line method with an estimated useful life of 10 years and an estimated residual value of $10,700.
Required:
1. Indicate the effects (accounts, amounts, and for increase or decrease) of each transaction (on January 1, 2, 3, and 5) on the accounting equation. (Enter any decreases to account balances with a minus sign.)
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “O'Connor Company ordered a machine on January 1 at a purchase price of $100,000. On the date of delivery, January 2, the company paid ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Katy, a manager, is evaluating her team members by rating them from best to worst. This rating is based on their overall performance. Which of the following performance-appraisal methods is Katy using in the given scenario? a.
Answers (1)
Which of the following is not a supply chain value-add? Multiple Choice Reduced overall total cost. Maximized firm competitiveness. Increased firm revenue. Improved firm asset utilization.
Answers (2)
What are some of the techniques businesses might use to make accurate sales forecasts?
Answers (1)
On January 1, Ayayai Corp. had 61,000 shares of no-par common stock issued and outstanding. The stock has a stated value of $4 per share. During the year, the following transactions occurred. Apr.
Answers (1)
Portable Pet Care, Inc., a mobile veterinary clinic, is planning for the future. The company owners (two seasoned veterinarians) have brought together the vice president of marketing and the director of information systems to talk about their
Answers (1)
New Questions in Business
The ultimate goal of the marketing process is to do which of the following?
Answers (1)
What effect do you think seasonal demand might have on the price of goods? Explain why.
Answers (1)
Welfare economics explains which of the following in the market for televisions? a. The government sets the quantity of televisions; firms respond to the quantity by charging a specific price. b.
Answers (1)
Cardinal Company is considering a five-year project that would require a $2,890,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 12%.
Answers (1)
Parwin Corporation plans to sell 42,000 units during August. If the company has 17,500 units on hand at the start of the month, and plans to have 18,500 units on hand at the end of the month, how many units must be produced during the month?
Answers (1)