- On September 1 1999 Smithco Purchased Equipment For 20 000 On A 90 Day 6 Note Interest Will Be Paid With The Pr 1 (98.64 KiB) Viewed 10 times
On September 1, 1999, Smithco purchased equipment for $ 20,000 on a 90-day, 6 %, note. Interest will be paid with the pr
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On September 1, 1999, Smithco purchased equipment for $ 20,000 on a 90-day, 6 %, note. Interest will be paid with the pr
On September 1, 1999, Smithco purchased equipment for $ 20,000 on a 90-day, 6 %, note. Interest will be paid with the principal. In addition, management had to pay a sales tax of 4 percent, shipping costs of $ 100, installation costs of $1,000 and repair costs of $ 250 to replace a pulley system that was accidentally destroyed. Required: 1. Indicate which cost would be part of the cost of the equipment. 2. Calculate the total cost of the equipment. 3. Indicate what the appropriate treatment would be for each cost that was not included in the cost of the equipment.