The following are independent situations. A company orders and receives 12 personal computers for office use for which it signs a note promising to pay $18,600 within three months. A company purchases for $22,000 cash a new delivery truck that has a list (sticker) price of $24,500. A womens clothing retailer orders 20 new display stands for $170 each for future delivery. A new company is formed and issues 800 shares for $16 per share to investors. A company purchases a piece of land for $37,000 cash. An appraiser for the buyer valued the land at $39,200. The owner of a local company buys a $12,000 car for personal use. Answer from the companys point of view. A company borrows $1,400 from a local bank and signs a six-month note for the loan. A company pays $1,140 owed on its note payable. (ignore interest.) Required: 1. Indicate titles of the appropriate accounts, if any, affected in each of the preceding events. Consider what the company gives and receives. 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? multiple choice 1 These are applications of the cost principle. These are applications of the market price principle. 3-a. What reasoning did you apply in c? multiple choice 2 The agreement in c. involves exchange of cash and goods and thus it is a transaction. The agreement in c. involves no exchange or receipt of cash, goods, or services and thus is not a transaction. 3-b. For f, what accounting concept did you apply? multiple choice 3 Because transaction f. occurs between the company and others, the separate entity assumption implies this transaction does affect the business. Because transaction f. occurs between the owner and others, the separate entity assumption implies this transaction does not affect the business.