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

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage 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 $25,000 cash a new delivery truck that has a list ("sticker") price of $28,000. c. A women's clothing retailer orders 30 new display stands for $340 each for future delivery. d. A new company is formed and issues 100 shares of stock for $14 per share to investors. e. A company purchases a piece of land for $54,000 cash. An appraiser for the buyer valued the land at $57,300. f. The owner of a local company uses a personal check to buy a $12,000 car for personal use. Answer from the company's point of view, 9. A company borrows $4,000 from a local bank and signs a six-month note for the loan. h. A company pays $1,900 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? Complete this question by entering your answers in the tabs below.

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

Fundamental Accounting Principles

Authors: John Wild, Ken Shaw, Barbara Chiappetta

22nd edition

9781259566905, 978-0-07-76328, 77862279, 1259566900, 0-07-763289-3, 978-0077862275

More Books

Students also viewed these Accounting questions