Q4

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The following are independent situations. 4 a. A company orders and receives 10 personal computers for office use for which it signs a note promising to pay $25,000 within three months. b. A company purchases for $21,000 cash a new delivery truck that has a list ("sticker") price of $24,000. c. A women's clothing retailer orders 30 new display stands for $300 each for future delivery. d. A new company is formed and issues 100 shares of stock for $12 per share to investors. e. A company purchases a piece of land for $50,000 cash. An appraiser for the buyer valued the land at $52,500. f. The owner of a local company uses a personal check to buy a $10,000 car for personal use. Answer from the company's point of view g. A company borrows $2,000 from a local bank and signs a six-month note for the loan h. A company pays $1,500 owed on its 10-year notes payable (ignore interest). 2.5 points eBook Required: Ask 1. Indicate titles of the appropriate accounts, if any, affected in each of the preceding events 2-a. At what amount would you record the delivery truck in (b)? 2-b. At what amount would you record the piece of land in (e)? 2-c. What measurement principle are you applying? 3-a. What reasoning did you apply in (c? 3-b. For (, what accounting concept did you apply? Print References Complete this question by entering your answers in the tabs below. Req 2B Req 1 Req 2A Req 2C Req 3A Req 3B Indicate titles of the appropriate accounts, if any, affected in each of the preceding events. Consider what the company gives and receives Given Received (a) (b) (c) (d) (e) (f) (g) (h) Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 2C Req 3A Req 3B At what amount would you record the delivery truck in (b)? Amount Req 1 Req 2B Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 2C Req 3A Req 3B At what amount would you record the piece of land in (e)? Amount KReq 2A Req 2C Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 2C Req 3A Req 3B What measurement principle are you applying? These are applications of the cost principle. OThese are applications of the market price principle. Req 2B Req 3A Complete this question by entering your answers in the tabs below. Req 2B Req 3B Req 1 Req 2A Req 2C Req 3A What reasoning did you apply in (c)? OThe agreement in (c) involves exchange of cash and goods and thus it is a transaction The agreement in (c) involves no exchange or receipt of cash, goods, or services and thus is not a transaction