Blocker Company Recently Acquired Two Items of Equipment

question 51

Multiple Choice

Blocker Company recently acquired two items of equipment. The transactions are described below:
June 10:
Acquired a press at an invoice price of $5,000, subject to a 2% cash discount which was taken. Costs of freight and insurance during shipment were $120. Installation costs were $250.
November 12:
Acquired a welding machine at an invoice price of $4,000, subject to a 3% cash discount which was NOT taken. Additional welding supplies were acquired at a total cost of $200.
The increase in the equipment account as a result of the above transactions would be

• A) $9,150.
• B) $9,270.
• C) $9,370.
• D) $9,570.

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Definitions:

Office Equipment

Office Equipment refers to the assets purchased for use in a business office, which may include computers, printers, furniture, and more, aiding in operational efficiencies.

Asset Accounts

Accounts that detail the resources owned by a business which have economic value and can be converted into cash.

Accounts Receivable

Outstanding amounts that customers owe to a business for delivered goods or services yet to be paid for.

Supplies Expense

Costs associated with the consumable items used in the daily operations of a business, which may include office or manufacturing supplies.