Acquisition of Trucks Acc 550 E 10-3

Name Section Date Exercise 10-3 (Acquisition cost of hand trucks) (Acquisition Costs of hand trucks) Shabbona Corporation E10-3 (Acquisition Costs of Trucks) Shabbona Corporation ope considers a retail ready reckoner store. To improve delivery services to customers, the beau monde purchases four parvenu trucks on April 1, 2012. The terms of acquisition for severally truck atomic number 18 described below. 1-Truck #1 has a slant worth of $15,000 and is acquired for a interchange payment of $13,900 2-Truck #2 has a run worth of $20,000 and is acquired for a down payment of $2,000 cash and a zerointerest-bearing asshole with a face amount of $18,000. The note is due April 1, 2013. Shabbona would ordinarily have to pay interest at a rate of 10% for such a acceptance, and the dealership has an incremental borrowing rate of 8%. ** Truck #3 has a list hurt of $16,000. It is acquired in step in for a computer formation that Shabbona carries in munimen t. The computer system make up $12,000 and is usually change by Shabbona for $15,200. Shabbona uses a perpetual inventory system. 4. Truck #4 has a list outlay of $14,000. It is acquired in exchange for 1,000 shares of common stock in Shabbona Corporation. The stock has a moderate value per share of $10 and a market price of $13 per share Shabbona Account Titles 1. 2. Debit Truck # 1 Cash Truck #2 Discount on Notes account payable $ Credit 13,900.

00 $ $ $ ** $ $ 13,900.00 2,000.00 18,000.00 18,364.00 1,636.00 Cash Notes Payable PV of $18000 @ 10% for 1 s tratum (PV of Single sum 10%, 1 year $14,00! 0) = $18,000*.90909= $16363.62 rnd $16,364 16,634 + $2,000= $18,364 ** 3. 4. * Truck # 3 COGS Inventory Sales $ $ 15,200.00 12,000.00 * $ $ Truck #4 $ 13,000.00 park Stock Paid in Capital in redundant of equation (1000 shares * $13 = $13,000 ; $13000 less $10,000 par val =$3,000) fair price; retail price for puter x chnge vehicles are never sold at list price >8B peeps forever ask for repair price 383...If you want to get a amply essay, enounce it on our website: OrderCustomPaper.com

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