Molitor Corporation builds in-home theater systems. Molitors business is growing quickly. Therefore, the CEO, Paul Molitor, 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 $21,000. Molitor exchanges home theater equipment from its inventory for the truck. The home theater equipment cost Molitor $13,000. Molitor normally sells the equipment for $19,750. Molitor uses a perpetual inventory system.
2.		The second truck has a list price of $22,000. Molitor makes a down payment of $5,000 cash on this truck and signs a zero-interest-bearing note with a face amount of $17,000. Payment of the note is due September 20, 2018. Molitor would normally have to pay interest at a rate of 8% for such a borrowing.
3.		The list price of the third truck is $19,200. This truck is acquired in exchange for 1,200 shares of common stock in Molitor Corporation. The stock has a par value per share of $12 and a market price of $15 per share.

Prepare the appropriate journal entries for the above transactions for Molitor Corporation.

Question 12 Molitor Corporation builds in-home theater systems. Molitor's business is growing quickly. Therefore, the CEO, Paul Molitor, decides to purchase three new trucks on September 20, 2017. The terms of acquisition for each truck are described below. 1. The first truck's list price is $21,000. Molitor exchanges home theater equipment from its inventory for the truck. The home theater equipment cost Molitor $13,000. Molitor normally sells the equipment for $19,750. Molitor uses a perpetual inventory system. The second truck has a list price of $22,000. Molitor makes a down payment of $5,000 cash on this truck and signs a zero-interest-bearing note with a face amount of $17,000. Payment of the note is due September 20, 2018. Molitor would normally have to pay interest at a rate of 8% for such a borrowing. The list price of the third truck is $19,200. This truck is acquired in exchange for 1,200 shares of common stock in Molitor Corporation. The stock has a par value per share of $12 and a market price of $15 per share. 3. Prepare the appropriate journal entries for the above transactions for Molitor 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.) No. Account Titles and Explanation Debit Credit