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Problem
On October 1, 2011, Atherton Fuel Corp. purchased new equipment from Acme Equipment Company that had a purchase price (including sales tax) of $76,245. Acme charged $1,700 to deliver the equipment and $6,800 to install it at Atherton Fuel's site. Atherton Fuel's accountant provided the payment for the equipment, delivery, and installation to Acme that day. Atherton Fuel had its own master-level employees perform trial runs on the equipment. This took 8.5 hours, and those employees earn $30 per hour. During the trial runs, there was some damage to one of the walls beside the equipment. Atherton Fuel's maintenance staff repaired the wall. The cost for the maintenance wages was $85. All wages for trial runs and wall repair will be paid at the end of the following week.
Prepare the journal entry to record the purchase of the equipment.
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