Ask Question
2 March, 09:34

O'Connor Company ordered a machine on January 1 at a purchase price of $120,000. On the date of delivery January 2, the company paid $30,000 on the machine and signed a long term note payable for the balance On January 3, it paid $1,200 for freight on the machine On January 5, O'Connor paid cash fo installation costs relating to the machine amounting to S7,200. 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 $12,800 Required 1. Indicate the ellects (accounts, amounts, and for increase or decrease) of each transaction (on January 1, 2, 3, and 5) on the accounting equation.

+2
Answers (1)
  1. 2 March, 11:25
    0
    Date Assets = Liabilities + Stockholders' equity

    Jan 1

    Jan 2 Cash $ - 30,000 Long term note payable 90,000

    Machine $ 120,000

    Jan 3 Machine $ 1,200

    Cash - 1,200

    Jan 5 Machine $ 7,200

    Cash - 7,200

    Dec. 31 Accumulated $11560

    depreciation
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “O'Connor Company ordered a machine on January 1 at a purchase price of $120,000. On the date of delivery January 2, the company paid ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers