Prepare entries in the books of Sanmara, Inc., to reflect the following. (Assume cash transactions.)
Purchased a lathing machine to be used by the firm in its production process.
|
Invoice price |
$45,000 |
|
Cash discount taken |
900 |
|
Installation costs . |
1,200 |
|
Sales tax on machine |
1,800 |
2. Performed normal periodic maintenance on the lathing machine at a cost of $200.
3. Added to the lathing machine a governor costing $400, which is expected to increase the machine s useful life.