Acquisition of Trucks Acc 550 E 10-3

Name Section Date Exercise 10-3 (Acquisition cost of transports) (Acquisition Costs of trucks) Shabbona Corporation E10-3 (Acquisition Costs of Trucks) Shabbona Corporation ope set outs a retail computing machine store. To improve delivery services to customers, the beau monde purchases four newfangled 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 controversy equipment casualty of $20,000 and is acquired for a down payment of $2,000 cash and a zerointerest-bearing ray 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 scathe of $16,000. It is acquired in transposition for a computer scheme that Shabbona carries in muniment. The computer system make up $12,000 and is normally change by Shabbona for $15,200. Shabbona uses a perpetual inventory system. 4. Truck #4 has a list hurt of $14,000. It is acquired in exchange for 1,000 shares of common stock in Shabbona Corporation. The stock has a remove 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 class (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 putting surface Stock Paid in Capital in tautological 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 break dance price 383...If you want to get a amply essay, aver it on our website: OrderCustomPaper.com

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