Question

List of accounts:

Accounts Payable
Accumulated Depreciation-Building
Accumulated Depreciation-Equipment
Accumulated Depreciation-Machinery
Accumulated Depreciation-Trucks
Buildings
Cash
Common Stock
Contribution Revenue
Cost of Goods Sold
Depreciation Expense
Direct Labor
Discount on Notes Payable
Equipment
Factory Overhead
Gain on Disposal of Buildings
Gain on Disposal of Equipment
Gain on Disposal of Machinery
Gain on Disposal of Trucks
Insurance Expense
Interest Expense
Inventory
Land
Land Improvements
Loss on Disposal of Buildings
Loss on Disposal of Equipment
Loss on Disposal of Machinery
Loss on Disposal of Trucks
Machinery
Maintenance and Repairs Expense
Materials
No Entry
Notes Payable
Organization Expense
Paid-in Capital in Excess of Par - Common Stock
Prepaid Insurance
Retained Earnings
Salaries and Wages Expense
Sales Revenue
Trading Securities
Trucks

Monty Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2017 The terms of acquisition for each truck are described below 1. Truck #1 has a list price of $27,750 and is acquired for a cash payment of $25,715 2. ck #2 has a list price of $29,600 and is acquired for a down payment of $3,700 cash and a zero-interest-bearing note with a face amount of $25,900. The note is due April 1, 2018, Monty would normally have to pay interest at a rate of 9% for such a borrowing, and the dealership has an incremental borrowing rate of 8% 3· Truck #3 has a list price of $29,600. It is acquired in exchange for a computer system that Monty carries in inventory. The computer system cost $22,200 and is normally sold by Monty for $28,120. Monty uses a perpetual inventory systemm 4· Truck #4 has a list price of $25,900. It is acquired in exchange for 1,060 shares of common stock in Monty Corporation. The stock has a par value per share of $10 and a market price of $13 per share Prepare the appropriate journal entries for the above transactions for Monty Corporation. (Round present value factors to 5 decimal places, e.g. 0.52587 and final answers to O decimal places, e.g. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No. Account Titles and Explanation Debit Credit 1. 2. 3. 4

Answer 1

#	Date	Description	Account	Debit	Credit
1	4/1/2014	Purchase of Truck in exchange for Cash	Truck	$25,715
			Cash		$25,715
2	4/1/2014	Purchase of Truck in exchange for Cash and Note Payable	Truck	$27,461
			Discount on Notes Payable	$ 2,139
			Cash		$ 3,700
			Notes Payable		$25,900
3	4/1/2014	Purchase of Truck in exchange for Inventory	Truck	$28,120
			Cost of Goods Sold	$22,200
			Inventory		$22,200
			Sales		$28,120
4	4/1/2014	Purchase of Truck in exchange for Common Stock	Truck	$13,780
			Common Stock		$10,600
			Paid-in-Capital		$  3,180