Question

Kelly Clarkson Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2014. The terms of acquisition for each truck are described below.

1.		Truck #1 has a list price of $32,850 and is acquired for a cash payment of $30,441.
2.		Truck #2 has a list price of $35,040 and is acquired for a down payment of $4,380 cash and a zero-interest-bearing note with a face amount of $30,660. The note is due April 1, 2015. Clarkson 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 $35,040. It is acquired in exchange for a computer system that Clarkson carries in inventory. The computer system cost $26,280 and is normally sold by Clarkson for $33,288. Clarkson uses a perpetual inventory system.
4.		Truck #4 has a list price of $30,660. It is acquired in exchange for 1,420 shares of common stock in Clarkson 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 Clarkson Corporation. (Round present value factors to 5 decimal places, e.g. 0.52500 and final answers to 0 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.	Kelly Clarkson Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2014. The terms of acquisition for each truck are described below. Truck #1 has a list price of $32,850 and is acquired for a cash payment of $30,441. 2. Truck #2 has a list price of $35,040 and is acquired for a down payment of $4,380 cash and a zero-interest-bearing note with a face amount of $30,660. The note is due April 1, 2015. Clarkson 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 $35,040. It is acquired in exchange for a computer system that Clarkson carries in inventory. The computer system cost $26,280 and is normally sold by Clarkson for $33,288. Clarkson uses a perpetual inventory system. 4. Truck #4 has a list price of $30,660. It is acquired in exchange for 1,420 shares of common stock in Clarkson 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 Clarkson Corporation. (Round present value factors to 5 decimal places, e.g. 0.52500 and final answers to 0 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.)	Kelly Clarkson Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2014. The terms of acquisition for each truck are described below. Truck #1 has a list price of $32,850 and is acquired for a cash payment of $30,441. 2. Truck #2 has a list price of $35,040 and is acquired for a down payment of $4,380 cash and a zero-interest-bearing note with a face amount of $30,660. The note is due April 1, 2015. Clarkson 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 $35,040. It is acquired in exchange for a computer system that Clarkson carries in inventory. The computer system cost $26,280 and is normally sold by Clarkson for $33,288. Clarkson uses a perpetual inventory system. 4. Truck #4 has a list price of $30,660. It is acquired in exchange for 1,420 shares of common stock in Clarkson 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 Clarkson Corporation. (Round present value factors to 5 decimal places, e.g. 0.52500 and final answers to 0 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.)	Kelly Clarkson Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2014. The terms of acquisition for each truck are described below. Truck #1 has a list price of $32,850 and is acquired for a cash payment of $30,441. 2. Truck #2 has a list price of $35,040 and is acquired for a down payment of $4,380 cash and a zero-interest-bearing note with a face amount of $30,660. The note is due April 1, 2015. Clarkson 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 $35,040. It is acquired in exchange for a computer system that Clarkson carries in inventory. The computer system cost $26,280 and is normally sold by Clarkson for $33,288. Clarkson uses a perpetual inventory system. 4. Truck #4 has a list price of $30,660. It is acquired in exchange for 1,420 shares of common stock in Clarkson 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 Clarkson Corporation. (Round present value factors to 5 decimal places, e.g. 0.52500 and final answers to 0 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.)
	Kelly Clarkson Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2014. The terms of acquisition for each truck are described below. Truck #1 has a list price of $32,850 and is acquired for a cash payment of $30,441. 2. Truck #2 has a list price of $35,040 and is acquired for a down payment of $4,380 cash and a zero-interest-bearing note with a face amount of $30,660. The note is due April 1, 2015. Clarkson 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 $35,040. It is acquired in exchange for a computer system that Clarkson carries in inventory. The computer system cost $26,280 and is normally sold by Clarkson for $33,288. Clarkson uses a perpetual inventory system. 4. Truck #4 has a list price of $30,660. It is acquired in exchange for 1,420 shares of common stock in Clarkson 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 Clarkson Corporation. (Round present value factors to 5 decimal places, e.g. 0.52500 and final answers to 0 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.)	Kelly Clarkson Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2014. The terms of acquisition for each truck are described below. Truck #1 has a list price of $32,850 and is acquired for a cash payment of $30,441. 2. Truck #2 has a list price of $35,040 and is acquired for a down payment of $4,380 cash and a zero-interest-bearing note with a face amount of $30,660. The note is due April 1, 2015. Clarkson 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 $35,040. It is acquired in exchange for a computer system that Clarkson carries in inventory. The computer system cost $26,280 and is normally sold by Clarkson for $33,288. Clarkson uses a perpetual inventory system. 4. Truck #4 has a list price of $30,660. It is acquired in exchange for 1,420 shares of common stock in Clarkson 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 Clarkson Corporation. (Round present value factors to 5 decimal places, e.g. 0.52500 and final answers to 0 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.)	Kelly Clarkson Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2014. The terms of acquisition for each truck are described below. Truck #1 has a list price of $32,850 and is acquired for a cash payment of $30,441. 2. Truck #2 has a list price of $35,040 and is acquired for a down payment of $4,380 cash and a zero-interest-bearing note with a face amount of $30,660. The note is due April 1, 2015. Clarkson 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 $35,040. It is acquired in exchange for a computer system that Clarkson carries in inventory. The computer system cost $26,280 and is normally sold by Clarkson for $33,288. Clarkson uses a perpetual inventory system. 4. Truck #4 has a list price of $30,660. It is acquired in exchange for 1,420 shares of common stock in Clarkson 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 Clarkson Corporation. (Round present value factors to 5 decimal places, e.g. 0.52500 and final answers to 0 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.)
2.	Kelly Clarkson Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2014. The terms of acquisition for each truck are described below. Truck #1 has a list price of $32,850 and is acquired for a cash payment of $30,441. 2. Truck #2 has a list price of $35,040 and is acquired for a down payment of $4,380 cash and a zero-interest-bearing note with a face amount of $30,660. The note is due April 1, 2015. Clarkson 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 $35,040. It is acquired in exchange for a computer system that Clarkson carries in inventory. The computer system cost $26,280 and is normally sold by Clarkson for $33,288. Clarkson uses a perpetual inventory system. 4. Truck #4 has a list price of $30,660. It is acquired in exchange for 1,420 shares of common stock in Clarkson 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 Clarkson Corporation. (Round present value factors to 5 decimal places, e.g. 0.52500 and final answers to 0 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.)	Kelly Clarkson Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2014. The terms of acquisition for each truck are described below. Truck #1 has a list price of $32,850 and is acquired for a cash payment of $30,441. 2. Truck #2 has a list price of $35,040 and is acquired for a down payment of $4,380 cash and a zero-interest-bearing note with a face amount of $30,660. The note is due April 1, 2015. Clarkson 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 $35,040. It is acquired in exchange for a computer system that Clarkson carries in inventory. The computer system cost $26,280 and is normally sold by Clarkson for $33,288. Clarkson uses a perpetual inventory system. 4. Truck #4 has a list price of $30,660. It is acquired in exchange for 1,420 shares of common stock in Clarkson 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 Clarkson Corporation. (Round present value factors to 5 decimal places, e.g. 0.52500 and final answers to 0 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.)	Kelly Clarkson Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2014. The terms of acquisition for each truck are described below. Truck #1 has a list price of $32,850 and is acquired for a cash payment of $30,441. 2. Truck #2 has a list price of $35,040 and is acquired for a down payment of $4,380 cash and a zero-interest-bearing note with a face amount of $30,660. The note is due April 1, 2015. Clarkson 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 $35,040. It is acquired in exchange for a computer system that Clarkson carries in inventory. The computer system cost $26,280 and is normally sold by Clarkson for $33,288. Clarkson uses a perpetual inventory system. 4. Truck #4 has a list price of $30,660. It is acquired in exchange for 1,420 shares of common stock in Clarkson 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 Clarkson Corporation. (Round present value factors to 5 decimal places, e.g. 0.52500 and final answers to 0 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.)
	Kelly Clarkson Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2014. The terms of acquisition for each truck are described below. Truck #1 has a list price of $32,850 and is acquired for a cash payment of $30,441. 2. Truck #2 has a list price of $35,040 and is acquired for a down payment of $4,380 cash and a zero-interest-bearing note with a face amount of $30,660. The note is due April 1, 2015. Clarkson 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 $35,040. It is acquired in exchange for a computer system that Clarkson carries in inventory. The computer system cost $26,280 and is normally sold by Clarkson for $33,288. Clarkson uses a perpetual inventory system. 4. Truck #4 has a list price of $30,660. It is acquired in exchange for 1,420 shares of common stock in Clarkson 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 Clarkson Corporation. (Round present value factors to 5 decimal places, e.g. 0.52500 and final answers to 0 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.)	Kelly Clarkson Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2014. The terms of acquisition for each truck are described below. Truck #1 has a list price of $32,850 and is acquired for a cash payment of $30,441. 2. Truck #2 has a list price of $35,040 and is acquired for a down payment of $4,380 cash and a zero-interest-bearing note with a face amount of $30,660. The note is due April 1, 2015. Clarkson 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 $35,040. It is acquired in exchange for a computer system that Clarkson carries in inventory. The computer system cost $26,280 and is normally sold by Clarkson for $33,288. Clarkson uses a perpetual inventory system. 4. Truck #4 has a list price of $30,660. It is acquired in exchange for 1,420 shares of common stock in Clarkson 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 Clarkson Corporation. (Round present value factors to 5 decimal places, e.g. 0.52500 and final answers to 0 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.)	Kelly Clarkson Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2014. The terms of acquisition for each truck are described below. Truck #1 has a list price of $32,850 and is acquired for a cash payment of $30,441. 2. Truck #2 has a list price of $35,040 and is acquired for a down payment of $4,380 cash and a zero-interest-bearing note with a face amount of $30,660. The note is due April 1, 2015. Clarkson 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 $35,040. It is acquired in exchange for a computer system that Clarkson carries in inventory. The computer system cost $26,280 and is normally sold by Clarkson for $33,288. Clarkson uses a perpetual inventory system. 4. Truck #4 has a list price of $30,660. It is acquired in exchange for 1,420 shares of common stock in Clarkson 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 Clarkson Corporation. (Round present value factors to 5 decimal places, e.g. 0.52500 and final answers to 0 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.)
	Kelly Clarkson Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2014. The terms of acquisition for each truck are described below. Truck #1 has a list price of $32,850 and is acquired for a cash payment of $30,441. 2. Truck #2 has a list price of $35,040 and is acquired for a down payment of $4,380 cash and a zero-interest-bearing note with a face amount of $30,660. The note is due April 1, 2015. Clarkson 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 $35,040. It is acquired in exchange for a computer system that Clarkson carries in inventory. The computer system cost $26,280 and is normally sold by Clarkson for $33,288. Clarkson uses a perpetual inventory system. 4. Truck #4 has a list price of $30,660. It is acquired in exchange for 1,420 shares of common stock in Clarkson 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 Clarkson Corporation. (Round present value factors to 5 decimal places, e.g. 0.52500 and final answers to 0 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.)	Kelly Clarkson Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2014. The terms of acquisition for each truck are described below. Truck #1 has a list price of $32,850 and is acquired for a cash payment of $30,441. 2. Truck #2 has a list price of $35,040 and is acquired for a down payment of $4,380 cash and a zero-interest-bearing note with a face amount of $30,660. The note is due April 1, 2015. Clarkson 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 $35,040. It is acquired in exchange for a computer system that Clarkson carries in inventory. The computer system cost $26,280 and is normally sold by Clarkson for $33,288. Clarkson uses a perpetual inventory system. 4. Truck #4 has a list price of $30,660. It is acquired in exchange for 1,420 shares of common stock in Clarkson 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 Clarkson Corporation. (Round present value factors to 5 decimal places, e.g. 0.52500 and final answers to 0 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.)	Kelly Clarkson Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2014. The terms of acquisition for each truck are described below. Truck #1 has a list price of $32,850 and is acquired for a cash payment of $30,441. 2. Truck #2 has a list price of $35,040 and is acquired for a down payment of $4,380 cash and a zero-interest-bearing note with a face amount of $30,660. The note is due April 1, 2015. Clarkson 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 $35,040. It is acquired in exchange for a computer system that Clarkson carries in inventory. The computer system cost $26,280 and is normally sold by Clarkson for $33,288. Clarkson uses a perpetual inventory system. 4. Truck #4 has a list price of $30,660. It is acquired in exchange for 1,420 shares of common stock in Clarkson 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 Clarkson Corporation. (Round present value factors to 5 decimal places, e.g. 0.52500 and final answers to 0 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.)
	Kelly Clarkson Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2014. The terms of acquisition for each truck are described below. Truck #1 has a list price of $32,850 and is acquired for a cash payment of $30,441. 2. Truck #2 has a list price of $35,040 and is acquired for a down payment of $4,380 cash and a zero-interest-bearing note with a face amount of $30,660. The note is due April 1, 2015. Clarkson 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 $35,040. It is acquired in exchange for a computer system that Clarkson carries in inventory. The computer system cost $26,280 and is normally sold by Clarkson for $33,288. Clarkson uses a perpetual inventory system. 4. Truck #4 has a list price of $30,660. It is acquired in exchange for 1,420 shares of common stock in Clarkson 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 Clarkson Corporation. (Round present value factors to 5 decimal places, e.g. 0.52500 and final answers to 0 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.)	Kelly Clarkson Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2014. The terms of acquisition for each truck are described below. Truck #1 has a list price of $32,850 and is acquired for a cash payment of $30,441. 2. Truck #2 has a list price of $35,040 and is acquired for a down payment of $4,380 cash and a zero-interest-bearing note with a face amount of $30,660. The note is due April 1, 2015. Clarkson 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 $35,040. It is acquired in exchange for a computer system that Clarkson carries in inventory. The computer system cost $26,280 and is normally sold by Clarkson for $33,288. Clarkson uses a perpetual inventory system. 4. Truck #4 has a list price of $30,660. It is acquired in exchange for 1,420 shares of common stock in Clarkson 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 Clarkson Corporation. (Round present value factors to 5 decimal places, e.g. 0.52500 and final answers to 0 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.)	Kelly Clarkson Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2014. The terms of acquisition for each truck are described below. Truck #1 has a list price of $32,850 and is acquired for a cash payment of $30,441. 2. Truck #2 has a list price of $35,040 and is acquired for a down payment of $4,380 cash and a zero-interest-bearing note with a face amount of $30,660. The note is due April 1, 2015. Clarkson 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 $35,040. It is acquired in exchange for a computer system that Clarkson carries in inventory. The computer system cost $26,280 and is normally sold by Clarkson for $33,288. Clarkson uses a perpetual inventory system. 4. Truck #4 has a list price of $30,660. It is acquired in exchange for 1,420 shares of common stock in Clarkson 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 Clarkson Corporation. (Round present value factors to 5 decimal places, e.g. 0.52500 and final answers to 0 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.)
3.	Kelly Clarkson Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2014. The terms of acquisition for each truck are described below. Truck #1 has a list price of $32,850 and is acquired for a cash payment of $30,441. 2. Truck #2 has a list price of $35,040 and is acquired for a down payment of $4,380 cash and a zero-interest-bearing note with a face amount of $30,660. The note is due April 1, 2015. Clarkson 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 $35,040. It is acquired in exchange for a computer system that Clarkson carries in inventory. The computer system cost $26,280 and is normally sold by Clarkson for $33,288. Clarkson uses a perpetual inventory system. 4. Truck #4 has a list price of $30,660. It is acquired in exchange for 1,420 shares of common stock in Clarkson 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 Clarkson Corporation. (Round present value factors to 5 decimal places, e.g. 0.52500 and final answers to 0 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.)	Kelly Clarkson Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2014. The terms of acquisition for each truck are described below. Truck #1 has a list price of $32,850 and is acquired for a cash payment of $30,441. 2. Truck #2 has a list price of $35,040 and is acquired for a down payment of $4,380 cash and a zero-interest-bearing note with a face amount of $30,660. The note is due April 1, 2015. Clarkson 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 $35,040. It is acquired in exchange for a computer system that Clarkson carries in inventory. The computer system cost $26,280 and is normally sold by Clarkson for $33,288. Clarkson uses a perpetual inventory system. 4. Truck #4 has a list price of $30,660. It is acquired in exchange for 1,420 shares of common stock in Clarkson 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 Clarkson Corporation. (Round present value factors to 5 decimal places, e.g. 0.52500 and final answers to 0 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.)	Kelly Clarkson Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2014. The terms of acquisition for each truck are described below. Truck #1 has a list price of $32,850 and is acquired for a cash payment of $30,441. 2. Truck #2 has a list price of $35,040 and is acquired for a down payment of $4,380 cash and a zero-interest-bearing note with a face amount of $30,660. The note is due April 1, 2015. Clarkson 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 $35,040. It is acquired in exchange for a computer system that Clarkson carries in inventory. The computer system cost $26,280 and is normally sold by Clarkson for $33,288. Clarkson uses a perpetual inventory system. 4. Truck #4 has a list price of $30,660. It is acquired in exchange for 1,420 shares of common stock in Clarkson 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 Clarkson Corporation. (Round present value factors to 5 decimal places, e.g. 0.52500 and final answers to 0 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.)
	Kelly Clarkson Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2014. The terms of acquisition for each truck are described below. Truck #1 has a list price of $32,850 and is acquired for a cash payment of $30,441. 2. Truck #2 has a list price of $35,040 and is acquired for a down payment of $4,380 cash and a zero-interest-bearing note with a face amount of $30,660. The note is due April 1, 2015. Clarkson 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 $35,040. It is acquired in exchange for a computer system that Clarkson carries in inventory. The computer system cost $26,280 and is normally sold by Clarkson for $33,288. Clarkson uses a perpetual inventory system. 4. Truck #4 has a list price of $30,660. It is acquired in exchange for 1,420 shares of common stock in Clarkson 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 Clarkson Corporation. (Round present value factors to 5 decimal places, e.g. 0.52500 and final answers to 0 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.)	Kelly Clarkson Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2014. The terms of acquisition for each truck are described below. Truck #1 has a list price of $32,850 and is acquired for a cash payment of $30,441. 2. Truck #2 has a list price of $35,040 and is acquired for a down payment of $4,380 cash and a zero-interest-bearing note with a face amount of $30,660. The note is due April 1, 2015. Clarkson 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 $35,040. It is acquired in exchange for a computer system that Clarkson carries in inventory. The computer system cost $26,280 and is normally sold by Clarkson for $33,288. Clarkson uses a perpetual inventory system. 4. Truck #4 has a list price of $30,660. It is acquired in exchange for 1,420 shares of common stock in Clarkson 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 Clarkson Corporation. (Round present value factors to 5 decimal places, e.g. 0.52500 and final answers to 0 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.)	Kelly Clarkson Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2014. The terms of acquisition for each truck are described below. Truck #1 has a list price of $32,850 and is acquired for a cash payment of $30,441. 2. Truck #2 has a list price of $35,040 and is acquired for a down payment of $4,380 cash and a zero-interest-bearing note with a face amount of $30,660. The note is due April 1, 2015. Clarkson 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 $35,040. It is acquired in exchange for a computer system that Clarkson carries in inventory. The computer system cost $26,280 and is normally sold by Clarkson for $33,288. Clarkson uses a perpetual inventory system. 4. Truck #4 has a list price of $30,660. It is acquired in exchange for 1,420 shares of common stock in Clarkson 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 Clarkson Corporation. (Round present value factors to 5 decimal places, e.g. 0.52500 and final answers to 0 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.)
	Kelly Clarkson Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2014. The terms of acquisition for each truck are described below. Truck #1 has a list price of $32,850 and is acquired for a cash payment of $30,441. 2. Truck #2 has a list price of $35,040 and is acquired for a down payment of $4,380 cash and a zero-interest-bearing note with a face amount of $30,660. The note is due April 1, 2015. Clarkson 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 $35,040. It is acquired in exchange for a computer system that Clarkson carries in inventory. The computer system cost $26,280 and is normally sold by Clarkson for $33,288. Clarkson uses a perpetual inventory system. 4. Truck #4 has a list price of $30,660. It is acquired in exchange for 1,420 shares of common stock in Clarkson 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 Clarkson Corporation. (Round present value factors to 5 decimal places, e.g. 0.52500 and final answers to 0 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.)	Kelly Clarkson Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2014. The terms of acquisition for each truck are described below. Truck #1 has a list price of $32,850 and is acquired for a cash payment of $30,441. 2. Truck #2 has a list price of $35,040 and is acquired for a down payment of $4,380 cash and a zero-interest-bearing note with a face amount of $30,660. The note is due April 1, 2015. Clarkson 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 $35,040. It is acquired in exchange for a computer system that Clarkson carries in inventory. The computer system cost $26,280 and is normally sold by Clarkson for $33,288. Clarkson uses a perpetual inventory system. 4. Truck #4 has a list price of $30,660. It is acquired in exchange for 1,420 shares of common stock in Clarkson 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 Clarkson Corporation. (Round present value factors to 5 decimal places, e.g. 0.52500 and final answers to 0 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.)	Kelly Clarkson Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2014. The terms of acquisition for each truck are described below. Truck #1 has a list price of $32,850 and is acquired for a cash payment of $30,441. 2. Truck #2 has a list price of $35,040 and is acquired for a down payment of $4,380 cash and a zero-interest-bearing note with a face amount of $30,660. The note is due April 1, 2015. Clarkson 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 $35,040. It is acquired in exchange for a computer system that Clarkson carries in inventory. The computer system cost $26,280 and is normally sold by Clarkson for $33,288. Clarkson uses a perpetual inventory system. 4. Truck #4 has a list price of $30,660. It is acquired in exchange for 1,420 shares of common stock in Clarkson 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 Clarkson Corporation. (Round present value factors to 5 decimal places, e.g. 0.52500 and final answers to 0 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.)
	Kelly Clarkson Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2014. The terms of acquisition for each truck are described below. Truck #1 has a list price of $32,850 and is acquired for a cash payment of $30,441. 2. Truck #2 has a list price of $35,040 and is acquired for a down payment of $4,380 cash and a zero-interest-bearing note with a face amount of $30,660. The note is due April 1, 2015. Clarkson 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 $35,040. It is acquired in exchange for a computer system that Clarkson carries in inventory. The computer system cost $26,280 and is normally sold by Clarkson for $33,288. Clarkson uses a perpetual inventory system. 4. Truck #4 has a list price of $30,660. It is acquired in exchange for 1,420 shares of common stock in Clarkson 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 Clarkson Corporation. (Round present value factors to 5 decimal places, e.g. 0.52500 and final answers to 0 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.)	Kelly Clarkson Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2014. The terms of acquisition for each truck are described below. Truck #1 has a list price of $32,850 and is acquired for a cash payment of $30,441. 2. Truck #2 has a list price of $35,040 and is acquired for a down payment of $4,380 cash and a zero-interest-bearing note with a face amount of $30,660. The note is due April 1, 2015. Clarkson 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 $35,040. It is acquired in exchange for a computer system that Clarkson carries in inventory. The computer system cost $26,280 and is normally sold by Clarkson for $33,288. Clarkson uses a perpetual inventory system. 4. Truck #4 has a list price of $30,660. It is acquired in exchange for 1,420 shares of common stock in Clarkson 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 Clarkson Corporation. (Round present value factors to 5 decimal places, e.g. 0.52500 and final answers to 0 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.)	Kelly Clarkson Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2014. The terms of acquisition for each truck are described below. Truck #1 has a list price of $32,850 and is acquired for a cash payment of $30,441. 2. Truck #2 has a list price of $35,040 and is acquired for a down payment of $4,380 cash and a zero-interest-bearing note with a face amount of $30,660. The note is due April 1, 2015. Clarkson 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 $35,040. It is acquired in exchange for a computer system that Clarkson carries in inventory. The computer system cost $26,280 and is normally sold by Clarkson for $33,288. Clarkson uses a perpetual inventory system. 4. Truck #4 has a list price of $30,660. It is acquired in exchange for 1,420 shares of common stock in Clarkson 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 Clarkson Corporation. (Round present value factors to 5 decimal places, e.g. 0.52500 and final answers to 0 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.)
4.	Kelly Clarkson Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2014. The terms of acquisition for each truck are described below. Truck #1 has a list price of $32,850 and is acquired for a cash payment of $30,441. 2. Truck #2 has a list price of $35,040 and is acquired for a down payment of $4,380 cash and a zero-interest-bearing note with a face amount of $30,660. The note is due April 1, 2015. Clarkson 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 $35,040. It is acquired in exchange for a computer system that Clarkson carries in inventory. The computer system cost $26,280 and is normally sold by Clarkson for $33,288. Clarkson uses a perpetual inventory system. 4. Truck #4 has a list price of $30,660. It is acquired in exchange for 1,420 shares of common stock in Clarkson 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 Clarkson Corporation. (Round present value factors to 5 decimal places, e.g. 0.52500 and final answers to 0 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.)	Kelly Clarkson Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2014. The terms of acquisition for each truck are described below. Truck #1 has a list price of $32,850 and is acquired for a cash payment of $30,441. 2. Truck #2 has a list price of $35,040 and is acquired for a down payment of $4,380 cash and a zero-interest-bearing note with a face amount of $30,660. The note is due April 1, 2015. Clarkson 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 $35,040. It is acquired in exchange for a computer system that Clarkson carries in inventory. The computer system cost $26,280 and is normally sold by Clarkson for $33,288. Clarkson uses a perpetual inventory system. 4. Truck #4 has a list price of $30,660. It is acquired in exchange for 1,420 shares of common stock in Clarkson 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 Clarkson Corporation. (Round present value factors to 5 decimal places, e.g. 0.52500 and final answers to 0 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.)	Kelly Clarkson Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2014. The terms of acquisition for each truck are described below. Truck #1 has a list price of $32,850 and is acquired for a cash payment of $30,441. 2. Truck #2 has a list price of $35,040 and is acquired for a down payment of $4,380 cash and a zero-interest-bearing note with a face amount of $30,660. The note is due April 1, 2015. Clarkson 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 $35,040. It is acquired in exchange for a computer system that Clarkson carries in inventory. The computer system cost $26,280 and is normally sold by Clarkson for $33,288. Clarkson uses a perpetual inventory system. 4. Truck #4 has a list price of $30,660. It is acquired in exchange for 1,420 shares of common stock in Clarkson 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 Clarkson Corporation. (Round present value factors to 5 decimal places, e.g. 0.52500 and final answers to 0 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.)
	Kelly Clarkson Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2014. The terms of acquisition for each truck are described below. Truck #1 has a list price of $32,850 and is acquired for a cash payment of $30,441. 2. Truck #2 has a list price of $35,040 and is acquired for a down payment of $4,380 cash and a zero-interest-bearing note with a face amount of $30,660. The note is due April 1, 2015. Clarkson 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 $35,040. It is acquired in exchange for a computer system that Clarkson carries in inventory. The computer system cost $26,280 and is normally sold by Clarkson for $33,288. Clarkson uses a perpetual inventory system. 4. Truck #4 has a list price of $30,660. It is acquired in exchange for 1,420 shares of common stock in Clarkson 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 Clarkson Corporation. (Round present value factors to 5 decimal places, e.g. 0.52500 and final answers to 0 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.)	Kelly Clarkson Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2014. The terms of acquisition for each truck are described below. Truck #1 has a list price of $32,850 and is acquired for a cash payment of $30,441. 2. Truck #2 has a list price of $35,040 and is acquired for a down payment of $4,380 cash and a zero-interest-bearing note with a face amount of $30,660. The note is due April 1, 2015. Clarkson 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 $35,040. It is acquired in exchange for a computer system that Clarkson carries in inventory. The computer system cost $26,280 and is normally sold by Clarkson for $33,288. Clarkson uses a perpetual inventory system. 4. Truck #4 has a list price of $30,660. It is acquired in exchange for 1,420 shares of common stock in Clarkson 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 Clarkson Corporation. (Round present value factors to 5 decimal places, e.g. 0.52500 and final answers to 0 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.)	Kelly Clarkson Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2014. The terms of acquisition for each truck are described below. Truck #1 has a list price of $32,850 and is acquired for a cash payment of $30,441. 2. Truck #2 has a list price of $35,040 and is acquired for a down payment of $4,380 cash and a zero-interest-bearing note with a face amount of $30,660. The note is due April 1, 2015. Clarkson 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 $35,040. It is acquired in exchange for a computer system that Clarkson carries in inventory. The computer system cost $26,280 and is normally sold by Clarkson for $33,288. Clarkson uses a perpetual inventory system. 4. Truck #4 has a list price of $30,660. It is acquired in exchange for 1,420 shares of common stock in Clarkson 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 Clarkson Corporation. (Round present value factors to 5 decimal places, e.g. 0.52500 and final answers to 0 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.)
	Kelly Clarkson Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2014. The terms of acquisition for each truck are described below. Truck #1 has a list price of $32,850 and is acquired for a cash payment of $30,441. 2. Truck #2 has a list price of $35,040 and is acquired for a down payment of $4,380 cash and a zero-interest-bearing note with a face amount of $30,660. The note is due April 1, 2015. Clarkson 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 $35,040. It is acquired in exchange for a computer system that Clarkson carries in inventory. The computer system cost $26,280 and is normally sold by Clarkson for $33,288. Clarkson uses a perpetual inventory system. 4. Truck #4 has a list price of $30,660. It is acquired in exchange for 1,420 shares of common stock in Clarkson 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 Clarkson Corporation. (Round present value factors to 5 decimal places, e.g. 0.52500 and final answers to 0 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.)	Kelly Clarkson Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2014. The terms of acquisition for each truck are described below. Truck #1 has a list price of $32,850 and is acquired for a cash payment of $30,441. 2. Truck #2 has a list price of $35,040 and is acquired for a down payment of $4,380 cash and a zero-interest-bearing note with a face amount of $30,660. The note is due April 1, 2015. Clarkson 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 $35,040. It is acquired in exchange for a computer system that Clarkson carries in inventory. The computer system cost $26,280 and is normally sold by Clarkson for $33,288. Clarkson uses a perpetual inventory system. 4. Truck #4 has a list price of $30,660. It is acquired in exchange for 1,420 shares of common stock in Clarkson 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 Clarkson Corporation. (Round present value factors to 5 decimal places, e.g. 0.52500 and final answers to 0 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.)	Kelly Clarkson Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2014. The terms of acquisition for each truck are described below. Truck #1 has a list price of $32,850 and is acquired for a cash payment of $30,441. 2. Truck #2 has a list price of $35,040 and is acquired for a down payment of $4,380 cash and a zero-interest-bearing note with a face amount of $30,660. The note is due April 1, 2015. Clarkson 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 $35,040. It is acquired in exchange for a computer system that Clarkson carries in inventory. The computer system cost $26,280 and is normally sold by Clarkson for $33,288. Clarkson uses a perpetual inventory system. 4. Truck #4 has a list price of $30,660. It is acquired in exchange for 1,420 shares of common stock in Clarkson 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 Clarkson Corporation. (Round present value factors to 5 decimal places, e.g. 0.52500 and final answers to 0 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.)

SHOW LIST OF ACCOUNTS

Answer 1

Concepts and reason

Perpetual inventory system: This is a system of accounting for inventory where the inventory is recorded as and when they are bought and sold. The up-to-date records are maintained for inventory and cost of goods sold. The records show the accurate figure at any point of time during the financial year.

Transaction: A transaction in business refers to any events that affect the financial position of the business that can be reliably measured in monetary terms.

Journal entry: It is the process of recording transactions in a chronological order. Normally double entry accounting system is used for recording accounting transactions. Under this method each transaction has two sides, debit side and credit side. Total amount of debit side must be equal to the total amount of credit side.

Accrual accounting refers to the accounting system, when revenues and expenditures are recorded when goods and services are sold or when the expenses are incurred, irrespective of the payment received or paid.

Revenues: The income or earnings received by a company for the goods and services delivered, are known as revenues. It is the income received by a company from its business operations.

Expenses: The costs borne by a company to produce and sell the goods and services to the customers are known as expenses.

Fundamentals

Assets: Asset is the resource used by the company to generate income. Assets can be classified into different types, Current assets, long term assets and intangible assets. Assets that are expected to be converted into cash within one year are called as current assets. Assets that are expected to be converted into cash more than one year are called as long-term assets. Asset which cannot be touch and see is called as intangible asset. Goodwill, patents etc are the examples of intangible assets.

Stockholders’ equity: A Shareholders claim on the assets of a company is known as stockholders’ equity, which are assets minus liabilities. This is also a permanent account because these balances are carried forward from one financial year to the other. Stockholders’ equity also called as owners’ equity.

Liabilities: Liability is an amount of money owed to outsider of the company. Accounts payable, bank loans, personal loans etc are examples of liability. Liabilities that are expected to repay within one year are coming under the category of current liabilities. Liabilities that are expected to repay more than one year are coming under the category of long term liabilities.

Rules for debit and credit

When asset increases debit it; asset decreases credit it.

When liabilities increases credit it; liabilities decreases debit it.

When stockholders’ equity increases credit it; stockholders’ equity decreases debit it.

Expenses and losses increases debit it; expenses and losses decreases credit it.

Incomes and gains increases credit it; incomes and gains decreases debit it.

Accounting equation: Accounting equation is the relationship among the assets, liabilities and stockholders’ equity. Total assets are equal to total liabilities and stockholders’ equity. According to this equation, when assets increase, corresponding increase will happen on either liabilities or owners’ equity. The following formula used for accounting equation

Truck: Truck is one of the important assets of the company. It is coming under the category of vehicles. It is motor vehicle used for transport goods.

Cash: Cash is the most liquid asset. Since assets are recorded according to their order of ability to be converted into cash, cash is recorded as the first item under the current assets category on the balance sheet.

Sales revenue: Sales revenue is the total income earned by a company by selling goods or rendering services.

Cost of goods sold: Cost of goods sold is the direct costs incurred by the business for the merchandise that the business has sold. The amount includes the materials costs used to create the goods and direct labor costs used to produce the goods.

Notes payable: It is a long-term financial agreement made between seller and buyer which are represented by promissory notes. It is given by the seller to the buyer in case of a credit purchase. Notes payable is coming under the category of liabilities.

Paid in capital in excess of par: It is an excess amount paid by the investor over the par value of the share, it is shown on the equity section of the balance sheet

Common stock: The amount invested in the corporation by an investor to receive a return or share of profit from the profits earned by the corporation is known as common stock. This is a stockholders’ equity account. If the company issues common stock to raise capital, it increases common stock value.

Journal entry for purchase of truck #1 is given below

Journal entry for purchase of truck #2 is given below

Working note:

Calculation of discount on notes payable is given below:

Therefore, the discount on notes payable is $2,532.

Therefore, the value of truck #2 is $32,508.

Journal entry for purchase of truck #3 is given below

Journal entry for purchase of truck #4 is given below

Working note:

Calculation of the value of truck #4 is given below:

Therefore, the value of truck #4 is $18,460.

Calculation of the value of common stock is given below:

Therefore, the value of common stock is $14,200.

Calculation of paid in capital in excess of par is given below:

Therefore, the paid in capital in excess of par is $4,260.

Ans: