Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Need some help with the question attached as images, thank you! Question 1 Kelly Clarkson Corporation operates a retail computer store. To improve delivery services

Need some help with the question attached as images, thank you!

image text in transcribedimage text in transcribed

Question 1 Kelly Clarkson Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2014. The terms of acquisition for each truck are described below 1. Truck #1 has a list price of $50,250 and is acquired for a cash payment of $46,565. 2. Truck #2 has a list price of $53,600 and is acquired for a down payment of $6,700 cash and a zero-interest-bearing note with a face amount of $46,900. The note is due April 1, 2015, Clarkson 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 #3 has a list price of $53,600. It is acquired in exchange for a computer system that Clarkson carries in inventory. The computer system cost $40,200 and is normally sold by Clarkson for $50,920. Clarkson uses a perpetual inventory system. 4. Truck #4 has a list price of $46,900. It is acquired in exchange for 1,080 shares of common stock in Clarkson 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 Clarkson Corporation. (Round present value factors to 5 decimal places, e.g. 0.52500 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 O for the amounts.)

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

Students also viewed these Accounting questions

Question

Find the equation of the tangent line y = (x2 + 1)-2 at (1, ).

Answered: 1 week ago