Acc422 Intermediate Accounting: E10-3 Shabbona Corporation operates a retail computer store

Acc422 Intermediate Accounting
E10-3 Acquisition Costs of Trucks
Shabbona Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April, 1 , 2010 . The terms of acquisition for each truck are described below.
l. Truck #1 has a list price of $15,000 and is acquired for a cash payment of $13,900.
2. Truck #2 has a list price of $20,000 and is acquired for a down payment of $2,000 cash and a zero interest-bearing note with a face amount of $18,000. The note is due April 1,,2011,. Shabbona would normally have to pay interest at a rate of 10% for such a borrowing, and the dealership has an incremental borrowing rate of 8%.
3. Truck #3 has a list price of $16,000. It is acquired in exchange for a computer system that Shabbqn carries in inventory. The computer system cost $12,000 and is normally sold by Shabbona $15,200. Shabbona uses a perpetual inventory system.
4. Truck #4 has a list price of $14,000. It is acquired in exchange for 1,000 shares of common stock in Shabbona Colporation. The stock has a par value per share of $10 and a market value of $13 per share-

Instructions
Prepare the appropriate joumal entries for the foregoing transactions for Shabbona Corporation. (Round computations to the nearest dollar.)
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