Orion Flour Mills purchased a new machine and incurred the following expenses:
Answer 1
Dr Equipment 62400 Dr Prepaid Insurance 500 Cr Cash 2900 Cr Accounts Payable 60,000 Explanation: Preparation of accounting entry to record the above expenses for the new machine. Dr Equipment 62400 Dr Insurance Prepaid 500 Cr Cash 2900 Cr Accounts Payable 60,000 (62,400+500-2900) Equipment: Purchase Price (55,000 USD) + Sales Tax (5,000) + Shipping (800) + Installation ( 1,600 ) = Total cost 62,400 Cash: Machine shipping (800) + Machine insurance ((500)) + Machine installation (1,600) = 2,900
answer 2
Answer; buy the note at a discount to the par value to be received at maturity;
answer 3
meets supplies;