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:

Financial Analyst

A professional responsible for assessing the financial health, performance, and viability of companies and industries for investment purposes.

Permanent Employee

An individual employed by a company with an indefinite contract, often receiving full employment benefits and job security.

Job Hopping

The practice of changing jobs frequently, often to seek better positions or explore different career opportunities.

Career Growth

The advancement in one’s career, characterized by increased responsibilities, higher job positions, and/or better salaries and benefits.