Acquisition of Trucks Acc 550 E 10-3

Name Section Date Exercise 10-3 (Acquisition cost of hand trucks) (Acquisition Costs of transports) 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 impudent trucks on April 1, 2012. The terms of acquisition for severally truck are 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 tip determine of $20,000 and is acquired for a down payment of $2,000 cash and a zerointerest-bearing shot 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 adoption, and the dealership has an incremental borrowing rate of 8%. ** Truck #3 has a list harm of $16,000. It is acquired in supervene upon for a computer placement that Shabbona carries in muniment. The computer system make up $12,000 and is unremarkably interchange by Shabbona for $15,200. Shabbona uses a perpetual inventory system. 4. Truck #4 has a list cost of $14,000. It is acquired in exchange for 1,000 shares of common stock in Shabbona Corporation. The stock has a accord 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 collectable $ 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 year (PV of Single sum 10%, 1 year $14,000) = ! $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 jet Stock Paid in Capital in superfluous 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 wear out price 383...If you want to get a amply essay, edict it on our website: OrderCustomPaper.com

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