Answered step by step
Verified Expert Solution
Question
1 Approved Answer
help with this thank you Windsor Corporation operates a retail computer store. To improve delivery senices to customers, the company purchases four new trucks on
help with this thank you
Windsor Corporation operates a retail computer store. To improve delivery senices to customers, the company purchases four new trucks on April 1, 2020. The terms of acquisition for each truck are described below. 1. Truck $1 has a list price of $25,950 and is acquired for a cash payment of $24,047. 2. Truck 42 has a list price of $27,680 and is acquired for a down payment of $3,460 cash and a zero-interest-bearing note with a face amount of $24,220. The note is due April 1,2021 Windsor 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 43 has a list price of $27,680. It is acquired in exchange for a computer system that Windsor carries in inventory. The computer system cost $20,760 and is normally sold by Windsor for $26,296. Windser uses a perpetual inventory system. 4. Truck 44 has a list price of $24,220. th is acquired in exchange for 950 shares of common stock in Windser Corporation The stock has a par value per share of $10 and a market price of $13 per share. Prepale the apprapriate journal entries for the above tramsections for Windser Corporation. flound present volue factors ta 5 decimol places, eg. 0.525:87 and final answers to 2 decimal places, es. 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 acceunt titles and enter O for the amountsStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started