No. | Account titles and explanation | Debit | Credit |
1 | Trucks | 17,375 | |
Cash | 17,375 | ||
2 | Trucks | 18,555 | |
Discount on Notes Payable | 1,445 | ||
Cash | 2,500 | ||
Notes payable | 17,500 | ||
3 | Trucks | 19,000 | |
Cost of goods sold | 15,000 | ||
Inventory | 15,000 | ||
Sales Revenue | 19,000 | ||
4 | Trucks | 12,220 | |
Common stock | 9,400 | ||
Paid in capital in excess of par common stock | 2,820 |
Calculations and explanations:
1. Transaction 1 is entered at the cash payment amount.
2. For transaction 2 the value of trucks = 17500*1/1.09 = 17500*0.91743 = 16,055.03. Thus value of trucks = 16055.03+2500 = 18555
Discount on notes payable = 2500+17500-16055.03 = 1444.97 or 1445
4. 12220 = 940*13
9400 = 940*10 and 2820 = 940*(13-10)
Monty Corporation operates a retail computer store. To improve delivery services to customers, the company purchases...
Swifty 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. Truck #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....
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Shamrock Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2020. The terms of acquisition for each truck are described below. 1. Truck #1 has a list price of $29,550 and is acquired for a cash payment of $27,383. 2. Truck #2 has a list price of $31,520 and is acquired for a down payment of $3,940 cash and a zero-interest-bearing note with a face amount of $27,580....
Oriole 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 $52,950 and is acquired for a cash
payment of $49,067.
2.
Truck #2 has a list price of $56,480 and is acquired for a down
payment of $7,060 cash and a zero-interest-bearing note with a face
amount of $49,420....
Sheridan 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 belaw 1, Truck #1 has a list price of $40,350 and is acquired for a cash payment of $37,391 2. Truck #2 has a list price of $43,040 and is acquired for a down payment of $5,380 cash and a zero interest-bearing note with a face a ount...
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...
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Exercise 10-3 Pharoah 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 $38,550 and is acquired for a cash payment of $35,723. 2. Truck #2 has a list price of $41,120 and is acquired for a down payment of $5,140 cash and a zero-interest-bearing note with a face amount...
Exercise 10-03
Metlock Corporation operates a retail computer store. To improve
delivery services to customers, the company purchases four new
trucks on April 1, 2020. The terms of acquisition for each truck
are described below.
1.
Truck #1 has a list price of $38,550 and is acquired for a cash
payment of $35,723.
2.
Truck #2 has a list price of $41,120 and is acquired for a down
payment of $5,140 cash and a zero-interest-bearing note with a face
amount...