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The following are independent situations. A company orders and receives 10 personal computers for office use for which it signs a note promising to pay
The following are independent situations.
- 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.
- A company purchases for $41,000 cash a new delivery truck that has a list ("sticker") price of $44,000.
- A women's clothing retailer orders 30 new display stands for $500 each for future delivery.
- A new company is formed and issues 100 shares of stock for $10 per share to investors.
- A company purchases a piece of land for $49,000 cash. An appraiser for the buyer valued the land at $56,300.
- The owner of a local company uses a personal check to buy a $20,000 car for personal use. Answer from the company's point of view.
- A company borrows $12,000 from a local bank and signs a six-month note for the loan
- A company pays $3,500 owed on its 10-year notes payable (ignore interest).
Required:
- Indicate titles of the appropriate accounts, if any, affected in each of the preceding events.
- 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)?
- c. What measurement principle are you applying?
- a. What reasoning did you apply in (C)?
3-b. For (f), what accounting concept did you apply?
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