Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Skysong Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2025. The terms

image text in transcribed Skysong Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2025. The terms of acquisition for each truck are described below. 1. Truck \#1 has a list price of $24,150 and is acquired for a cash payment of $22,379. 2. Truck \#2 has a list price of $25,760 and is acquired for a down payment of $3,220 cash and a zero-interestbearing note with a face amount of $22,540. The note is due April 1,2026 . Skysong would normally have to pay interest at a rate of 9% for such a borrowing, and the dealership has a borrowing rate of 8%. 3. Truck \#3 has a list price of $25,760. It is acquired in exchange for a computer system that Skysong carries in inventory. The computer system cost $19,320 and is normally sold by Skysong for $24,472. Skysong uses a perpetual inventory system. 4. Truck \#4 has a list price of $15,240. It is acquired in exchange for 1,090 shares of common stock in Skysong 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 Skysong Corporation. (Round present value factors to 5 decimal places, e.g. 0.52587 and final answers to 2 decimal places, e.g. 52.75. 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 0 for the amounts. List all debit entries before credit entries.)

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

More Books

Students also viewed these Accounting questions

Question

9.3 Summarize the four stages of group and team development.

Answered: 1 week ago

Question

I receive useful feedback about my performance.

Answered: 1 week ago

Question

I am encouraged to offer opinions/suggestions.

Answered: 1 week ago