Question $2$ of $5$

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Pharoah Inc. operates a retail computer store. To improve its delivery services to customers, the company purchased four new trucks on April $1,2023.$ The terms of acquisition for each truck were as follows:

Truck #$1$ had a list price of $$29,500$ and was acquired for a cash payment of $$22,400.$

Truck #$2$ had astist price of $$28,100$ and was acquired for a down payment of $$2,100$ cash and a non$-$interest$-$bearing note with a face amount of $$26,000.$ The note is due April $1,2024.$ Pharoah would normally have to pay interest at a rate of $10\%$ for such a borrowing, and the dealership has an incremental borrowing rate of $8\%.$

Truck #$3$ had a list price of $$24,000.$ It was acquired in exchange for a computer system that Pharoah carries in inventory. The computer system cost $$16,400$ and is normally sold by Pharoah for $$19,600.$ Pharoah uses a perpetual inventory system.

Truck #$4$ had a list price of $$28,200.$ It was acquired in exchange for $1,000$ common shares of Pharoah. The common shares trade in an active market valued at $$23$ per share in the most recent trade.

Click here to view Table A$.4-$ PRESENT VALUE OF AN ORDINARY ANNUITY OF $1$

$($a$)$ Prepare the appropriate journal entries for Pharoah Inc. for the above transactions, assuming that Pharoah prepares financial statements in accordance with IFRS. For Truck #$2,$ calculate the purchase price using any of the three methods $($tables$,$ financial calculator, or Excel$).($Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is