Question: Orion Flour Mills purchased a new machine and made the following expenditures:
Purchase price $65,000
Sales tax 5,500
Shipment of machine 900
Insurance on the machine for the first year 600
Installation of machine 1,800
The machine, including sales tax, was purchased on account, with payment due in 30 days. The other expenditures listed above were paid in cash.
Required: Record the above expenditures for the new machine.