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?
Get 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 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
You Might be Interested in
A stock is priced at $85 per share and pays a quarterly dividend of $2.10 per share. What is the dividend yield per stock share per year? a) 2.8% b) 3.5% c) 9.9% d) 11.3%
Answers (1)
Catherine wanted to purchase a digital camera. Hence, she visited an online retailer's website to learn more about the different features and capabilities of the device. Catherine went to a supermarket to make other purchases.
Answers (1)
McLeod Inc. is considering an investment that has an expected return of 15% and a standard deviation of 10%. What is the investment's coefficient of variation?
Answers (1)
According to circus founder P. T. Barnum, what happens without publicity? Question 3 options: Business failure Decline in customers Increased productivity Nothing
Answers (2)
The company that you manage has invested $5 million in developing a new product, but the development is not quite finished.
Answers (1)
New Questions in Business
Explain what is meant by market research.
Answers (1)
Jean, a restaurant critic, publishes a review in a national daily that the sandwiches served at his friend's deli are usually not fresh. Tom, the owner of the deli, notices a significant decrease in customers after the review gets published.
Answers (1)
Why did the Soviet Union experience many surpluses and shortfalls? A) The labor force wasn't well educated B) The cold climate made farming hard C) Central planners could not manage every detail D) The country depended on imports to obtain resources.
Answers (1)
A hospitality operation has sales revenue of $462,000 with variable cost averaging 44%. Fixed costs are $188,000. The owner wants a net income after tax of $50,400 based on a tax rate of 28%. a.
Answers (1)
True or false fdr was eager to use deficit spending to end the economic crisis.
Answers (1)