Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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

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

Recommended Textbook for

Hong Kong Auditing Economic Theory And Practice

Authors: Simon Fung, Ferdinard A. Gul

3rd Edition

9629372347, 978-9629372347

More Books

Students also viewed these Accounting questions

Question

What could the team have done to avoid the situation described?

Answered: 1 week ago

Question

Relational Contexts in Organizations

Answered: 1 week ago