During year 1, ashkar company ordered a machine on january 1 at an invoice price of $21,000. on the date of delivery, january 2, the company paid $6,000 on the machine, with the balance on credit at 10 percent interest due in six months. on january 3, it paid $1,000 for freight on the machine. on january 5, ashkar paid installation costs relating to the machine amounting to $2,500. on july 1, the company paid the balance due on the machine plus the interest. on december 31 (the end of the accounting period), ashkar recorded depreciation on the machine using the straight-line method with an estimated useful life of 10 years and an estimated residual value of $3,000. indicate the effects (accounts, amounts, and + or − ) of each transaction on the accounting equation. use the following schedule: (if the transaction does not impact the accounting equation choose "no effect" in the first column under "assets".

Make or buy eastside company incurs a total cost of $120,000 in producing 10,000 units of a component needed in the assembly of its major product. the component can be purchased from an outside supplier for $11 per unit. a related cost study indicates that the total cost of the component includes fixed costs equal to 50% of the variable costs involved. a. should eastside buy the component if it cannot otherwise use the released capacity? present your answer in the form of differential analysis. use negative sign represent a net disadvantage answer; otherwise do not use negative signs with your answers. cost from outside supplier $answer variable costs avoided by purchasing answer net advantage (disadvantage) to purchase alternative $answer b. what would be your answer to requirement (a) if the released capacity could be used in a project that would generate $50,000 of contribution margin? use negative sign represent a net disadvantage answer; otherwise do not use negative signs with your answers.