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Oaktree company purchased a new machine

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Reference no: EM13999442

Oaktree Company purchased a new machine and made the following expenditures:

Purchase price ............ $45,000
Sales tax ................ $2,200
Freight charges for shipment of machine .... $700
Insurance on the machine for the first year . $900
Installation of machine ........ $1,000

The machine, including sales tax, was purchased on open account, with payment due in 30 days. The other expenditures listed above were paid in cash.

Required:

Prepare the necessary journal entries to record the above expenditures. 

Reference no: EM13999442

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