Question

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

Answer 1

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.