22.1k views
5 votes
Rochester Flour Mills purchased new equipment and made the following expenditures: Purchase price Sales tax Shipment of equipment Insurance on the equipment for the first year Installation of equipment $ 70,000 5,750 950 650 1,900 Required: Record the expenditures. All expenditures were paid in cash. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 Record the expenditures. All expenditures were paid in cash. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal

User Yigang Wu
by
8.2k points

1 Answer

6 votes

Final answer:

To record the expenditures for Rochester Flour Mills, create journal entries for each expense category and debit the Equipment account while crediting the Cash account.

Step-by-step explanation:

To record the expenditures for Rochester Flour Mills, we will create journal entries for each expense category.

For the purchase price of $70,000, we will debit the Equipment account and credit the Cash account.

For the sales tax of $5,750, we will debit the Equipment account and credit the Cash account.

For the shipment of equipment of $950, we will debit the Equipment account and credit the Cash account.

For the insurance on the equipment for the first year of $650, we will debit the Equipment account and credit the Cash account.

For the installation of equipment of $1,900, we will debit the Equipment account and credit the Cash account.

User Satish Mavani
by
7.7k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.