Dan Company Recently Acquired Two Items of Equipment

question 15

Multiple Choice

Dan Company recently acquired two items of equipment.The transactions are described below: June 10:
Acquired a press at an invoice price of $6,500,subject to a 2% cash discount which was taken.Costs of freight and insurance during shipment were $205.Installation costs were $350.
November 12:
Acquired a welding machine at an invoice price of $4,000,subject to a 4% cash discount which was NOT taken.Additional welding supplies were acquired at a total cost of $300.
The increase in the equipment account as a result of the above transactions would be

• A) $10,525
• B) $10,720
• C) $10,925
• D) $11,225

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Definitions:

Exocrine

Glands that release their secretions outside the body or into a hollow organ, as opposed to directly into the bloodstream.

Secretion

Substance produced inside a cell and released from the cell.

Humoral

Pertaining to body fluids or substances contained in them, often used to refer to the humoral immune response mediated by B cells and antibodies.

Neural

Related to nerves or the nervous system, including brain activities, nerve processes, and neural signaling.