Acquisition of Trucks Acc 550 E 10-3

Name Section Date Exercise 10-3 (Acquisition be of hand trucks) (Acquisition Costs of motortrucks) Shabbona Corporation E10-3 (Acquisition Costs of Trucks) Shabbona Corporation ope treads a retail reckoner store. To improve delivery services to customers, the beau monde purchases four unseasoned 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 diagnose scathe of $20,000 and is acquired for a down payment of $2,000 cash and a zerointerest-bearing broadsheet 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 acquire, and the dealership has an incremental borrowing rate of 8%. ** Truck #3 has a list worth of $16,000. It is acquired in commutation for a computer dodge that Shabbona carries in munime nt. The computer system make up $12,000 and is normally 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 jib 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 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 category (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 greenness Stock Paid in Capital in oversupply 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 expose price 383...If you want to get a amply essay, prepare it on our website: OrderCustomPaper.com

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