#10.1 Metlock Limited purchased equipment for an invoice price of $49,700, terms 3/10, n/30.

Record the purchase of the equipment and the subsequent payment, assuming the payment was made within the discount period.

Accounts Titles and Explanation Debit Credit

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(To record purchase of equipment on account)

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(To record purchase on account)

Record the purchase of the equipment and the subsequent payment, assuming the company's payment missed the discount period.

Account Titles and Explanation Debit Credit

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(To record purchase of equipment on account)

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(To record payment on account)

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(To record discount loss)

#10.2 Larkspur Corporation purchased a truck by issuing a $78,100, four-year, noninterest-bearing note to Equinox Inc. The market interest rate for obligations of this nature is 11%.

Calculate the purchase price using any of the three methods (tables, financial calculator, or Excel). (Round factor values to 5 decimal places)

Purchase Price = $???

Prepare the journal entry to record the truck purchase.

Account Titles and Explanation Debit Credit

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#10.3 Skysong Corporation purchased a truck by issuing an $88,000, 13% note to Equinox Inc. Interest is payable annually and the note is payable in four years.

Prepare the journal entry to record the truck purchase.

Account Titles and Explanations Debit Credit

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#10.4 Marin Inc. purchased land, a building, and equipment from Spamela Corporation for a cash payment of $419,400.The assets' estimated fair values are Alan $99,000, building $258,000, and equipment $109,000.

At what amounts should each of the three assets be recorded?

Land $???

Building $???

Equipment $???

#10.5 Metlock Corp., a private company, obtained land by issuing 1,920 of its common shares. The land was appraised at $82,500 by a reliable, independent evaluator on the date of acquisition. Last year, Metlock sold 1,700 common shares at $41 per share.

Account Titles and Explanation Debit Credit

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Prepare the journal entry to record the land acquisition if Metlock prepares financial statements in accordance with ASPE.

Account Titles and Explanation Debit Credit

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#10.6 Shamrock Inc. traded a used vehicle (cost $25,000, accumulated depreciation $22,500) for another used vehicle with a fair value of $3,700. Shamrock also paid $350 cash in the transaction.

Prepare the journal entry to record the exchange, assuming the transaction lacks commercial substance.

Account Titles and Explanation Debit Credit

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#10.7 Metlock Ltd. traded a used welding machine (cost $10,100, accumulated depreciation $2,070, fair value $3,640) for equipment with an estimated fair value of $8,780. Metlock also paid $4,390 cash in the transaction.

Prepare the journal entry to record the exchange. The equipment results in different cash flows for Metlock, compared with those the welding machine produced.

Account Titles and Explanation Debit Credit

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#10.8 Metlock Ltd. traded a used truck (cost $31,300, accumulated depreciation $28,170, fair value $1,030) for a new truck with a fair value of $33,450. Metlock also made a cash payment of $32,420.

Prepare Metlocks entry to record the exchange.

Account Titles and Explanation Debit Credit

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