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Pronghern Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on Apil 1, 2017. The terms
Pronghern Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on Apil 1, 2017. The terms of acquisition for each truck are described below. 1 Truck #1 has a list pnce of $20,550 and is acquired for cash payment of $19.043. 2. Truck #2 has a st pn e of $21,920 and s acquired fer a down payment o 52 740 cash and a zero-nterest-bearing note with a face amount of19 180. The note s due April 1 2018. onghorn auld normally have to pay interest at a rate of 109, for such a borra and the dealership has an incremental borrowing rate of 8 3. Truck #3 h85list p ce of S21 920 t is ecqured in exchenge or 8 com outer 5ystem that onghorm carries in ime tory. The computer 5ystem cost $16,440 and normely sold by Pronghorn for 520 824 Pronghorn uses perpe us r ventory system. 4 Truck #4 has a list pnce of S 19,180. It s 2cqured in exch,nge for 1,090 shares of common stock in Frongnom Corporaton. The stock has par value per share of $10 and market pr ce of S13 per share. Prepare the apprepnate joumal entries for the above transactions for Prongharn 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 tities are automatically indented when amount is entered. Do not indent anually. If no entry is required, select "No Entry" for the account tities and enter for the amounts. No. Account Titles and Explanation
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