Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following are independent situations. a. A company orders and receives 10 personal computers for office use for which it signs a note promising to

image text in transcribed

image text in transcribed

The following are independent situations. a. A company orders and receives 10 personal computers for office use for which it signs a note promising to pay $20,000 within three months. b. A company purchases for $37,000 cash a new delivery truck that has a list ("sticker") price of $40,000. c. A women's clothing retailer orders 30 new display stands for $460 each for future delivery. d. A new company is formed and issues 100 shares of stock for $11 per share to investors. e. A company purchases a piece of land for $45,000 cash. An appraiser for the buyer valued the land at $51,500. f. The owner of a local company uses a personal check to buy a $18,000 car for personal use. Answer from the company's point of view. g. A company borrows $10,000 from a local bank and signs a six-month note for the loan. h. A company pays $3,100 owed on its 10 -year notes payable (ignore interest). Required: 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 (f), what accounting concept did you apply? 3-a. What reasoning did you apply in (c)? 3-b. For (f), what accounting concept did you apply? Complete this question by entering your answers in the tabs below. Indicate titles of the appropriate accounts, if any, affected in each of the preceding events. (If no entry is require transaction/event select "No transaction" in the first account field.)

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

Managerial Accounting

Authors: John Wild

1st Edition

0073403989, 978-0073403984

More Books

Students also viewed these Accounting questions

Question

107 MA ammeter 56 resistor ? V voltmeter

Answered: 1 week ago

Question

Generally If Drug A is an inducer of Drug B , Drug B levels will

Answered: 1 week ago

Question

3. Explain the forces that influence how people handle conflict

Answered: 1 week ago