Hidden Lakes Company purchased a delivery truck. The total cash payment was $30,020, including the following items.
|
Negotiated purchase price
|
$24,000
|
|
Installation of special shelving
|
1,100
|
|
Painting and lettering
|
900
|
|
Motor vehicle license
|
180
|
|
Annual insurance policy
|
2,400
|
|
Sales tax
|
1,440
|
|
Total paid
|
$30,020
|
Explain how each of these costs would be accounted for.