Oaktree Company purchased a new machine and made the following expenditures:
Purchase price ............ $45,000
Sales tax ................ $2,200
Freight charges for shipment of machine .... $700
Insurance on the machine for the first year . $900
Installation of machine ........ $1,000
The machine, including sales tax, was purchased on open account, with payment due in 30 days. The other expenditures listed above were paid in cash.
Required:
Prepare the necessary journal entries to record the above expenditures.