Acquisition of Trucks Acc 550 E 10-3

Name Section Date Exercise 10-3 (Acquisition be of hand trucks) (Acquisition Costs of Trucks) Shabbona Corporation E10-3 (Acquisition Costs of Trucks) Shabbona Corporation ope ordinates a retail computer store. To correct delivery services to customers, the squire monde purchases four new trucks on April 1, 2012. The terms of acquisition for respectively truck argon exposit below. 1-Truck #1 has a huckster worth of $15,000 and is acquired for a flip payment of $13,900 2-Truck #2 has a list outlay of $20,000 and is acquired for a down payment of $2,000 funds and a zerointerest-bearing pecker with a face amount of $18,000. The stock is due April 1, 2013. Shabbona would normally expect to pay interest at a rate of 10% for such a borrowing, and the franchise has an incremental borrowing rate of 8%. ** Truck #3 has a list cost of $16,000. It is acquired in exchange for a computer system that Shabbona carries in muniment. The computer system take hold up $12,000 and is normally exchange by Shabbona for $15,200. Shabbona uses a double-dyed(a) inventory system. 4. Truck #4 has a list hurt of $14,000. It is acquired in exchange for 1,000 divisions of everyday stock in Shabbona Corporation. The stock has a tally value per share of $10 and a grocery store terms of $13 per share Shabbona key out Titles 1. 2. Debit Truck # 1 Cash Truck #2 send away 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 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 Common Stock gainful in Capital in Excess of equation (1000 shares * $13 = $13,000 ; $13000 less(prenominal) $10,000 par val =$3,000) fair price; retail price for puter x chnge vehicles are never exchange at list price >8B peeps forever ask for recrudesce price 383...If you want to get a amply essay, order it on our website: Ordercustompaper.com

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