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A big departmental store purchased new computing equipment. Following are the information related to the purchase and installation of the computing system:
a. Invoice value of machine was $85,000.
b. further to invoice value sales taxes of $5,000 was also paid.
c. delivery charges of the equipment totaled $300.
d. Installation cost paid was $500.
e. due to mishandling, one of the computer part was accidentally damaged. replaced part costs $450.
Instructions:
Question a. Compute the total cost debited to the Store's Computing Equipment account.
Question b. Make journal entry of the transaction.
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