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Blue Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2025. The terms
Blue Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2025. The terms of acquisition for each truck are described below. 1. Truck \#1 has a list price of $52,950 and is acquired for a cash payment of $49,067. 2. Truck \# 2 has a list price of $56,480 and is acquired for a down payment of $7,060 cash and a zero-interest-bearing note with a face amount of $49,420. The note is due April 1,2026 . Blue would normally have to pay interest at a rate of 9% for such a borrowing, and the dealership has a borrowing rate of 8%. 3. Truck \#3 has a list price of $56,480. It is acquired in exchange for a computer system that Blue carries in inventory. The computer system cost $42,360 and is normally sold by Blue for $53,656. Blue uses a perpetual inventory system. 4. Truck \#4 has a list price of $13,520. It is acquired in exchange for 960 shares of common stock in Blue Corporation. The stock has a par value per share of $10 and a market price of $13 per share. Prepare the appropriate journal entries for the above transactions for Blue Corporation. (Round present value factors to 5 decimal places, e.g. 0.52587 and final answers to 2 decimal places, e.g. 52.75. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.) No. Account Titles and Explanation 1. Trucks Cash 2. Trucks Discount on Notes Payable Cash Notes Payable 3. Debit Trucks Credit 3. Trucks 4. Trucks Common Stock Paid-in Capital in Excess of Par - Common Stock 2880
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