Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bramble Corporation builds in-home theater systems. Brambles business is growing quickly. Therefore, the CEO, Paul Bramble, decides to purchase three new trucks on September 20,

Bramble Corporation builds in-home theater systems. Brambles business is growing quickly. Therefore, the CEO, Paul Bramble, decides to purchase three new trucks on September 20, 2017. The terms of acquisition for each truck are described below.

1. The first trucks list price is $ 26,040. Bramble exchanges home theater equipment from its inventory for the truck. The home theater equipment cost Molitor $ 16,120. Bramble normally sells the equipment for $ 24,490. Bramble uses a perpetual inventory system.
2. The second truck has a list price of $ 27,280. Bramble makes a down payment of $ 6,200 cash on this truck and signs a zero-interest-bearing note with a face amount of $ 21,080. Payment of the note is due September 20, 2018. Bramble would normally have to pay interest at a rate of 8% for such a borrowing.
3. The list price of the third truck is $ 23,808. This truck is acquired in exchange for 1,488 shares of common stock in BrambleCorporation. The stock has a par value per share of $ 10 and a market price of $ 15 per share.

Prepare the appropriate journal entries for the above transactions for Bramble Corporation. (Round present value factors to 5 decimal places, e.g. 0.52587 and final answers to 2 decimal places, e.g. 5,275.50. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Police Auditing Standards And Applications

Authors: Allan Y. Jiao

2nd Edition

0398090750, 978-0398090753

More Books

Students also viewed these Accounting questions