Exercise 10-3

Marin Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2017. The terms of acquisition for each truck are described below.

1.Truck #1 has a list price of $45,750and is acquired for a cash payment of $42,395.2.Truck #2 has a list price of $48,800and is acquired for a down payment of $6,100cash and a zero-interest-bearing note with a face amount of $42,700. The note is due April 1, 2018. Marin would normally have to pay interest at a rate of9% for such a borrowing, and the dealership has an incremental borrowing rate of8%.3.Truck #3 has a list price of $48,800. It is acquired in exchange for a computer system that Marin carries in inventory. The computer system cost $36,600and is normally sold by Marin for $46,360. Marin uses a perpetual inventory system.4.Truck #4 has a list price of $42,700. It is acquired in exchange for900shares of common stock in Marin Corporation. The stock has a par value per share of $10and a market price of $13per share.

Prepare the appropriate journal entries for the above transactions for Marin Corporation.(Round present value factors to 5 decimal places, e.g. 0.52587 and final answers to 0 decimal places, e.g. 5,275. 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.)

No.

Account Titles and Explanation

Debit

Credit

1.

2.

3.

4.