The terms of acquisition for each truck are described below

Assignment Help Accounting Basics
Reference no: EM131118031

Acquisition Costs of Trucks Shabbona Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2010. The terms of acquisition for each truck are described below.

1. Truck #1 has a list price of $15,000 and is acquired for a cash payment of $13,900.

2. Truck #2 has a list price of $20,000 and is acquired for a down payment of $2,000 cash and a zero-interest-bearing note with a face amount of $18,000. The note is due April 1, 2011. Shabbona would normally have to pay interest at a rate of 10% for such a borrowing, and the dealership has an incremental borrowing rate of 8%.

3. Truck #3 has a list price of $16,000. It is acquired in exchange for a computer system that Shabbona carries in inventory. The computer system cost $12,000 and is normally sold by Shabbona for $15,200. Shabbona uses a perpetual inventory system.

4. Truck #4 has a list price of $14,000. It is acquired in exchange for 1,000 shares of common stock in Shabbona Corporation. The stock has a par value per share of $10 and a market value of $13 per share. Prepare the appropriate journal entries for the foregoing transactions for Shabbona Corporation. (Round computations to the nearest dollar)

Reference no: EM131118031

Price and constant growth rate of stock

Philly Corp's stock recently paid a dividend of $2 per share (Do = $2), and the stock is in equilibrium. The company has a constant growth rate of 5% and a beta of 1.5. The

Distribution model and dividend per share

The Big Corporation expects next year's net income to be $20 million. The firm's debt ratio is currently 30%. Big has $18 million of profitable investment opportunities, and

Goals and perspectives of psychology paper

There are eight current perspectives in psychology; psychoanalytic, behavioral, humanistic, cognitive, evolutionary, biological, sociocultural, and psychosocially. All eight

Distribution curve mean, median and mode coincide

For normal distribution curve mean, median and mode coincide. Also every distribution is divided into two equal parts by its median, i.e. symmetric about median. Since for a

Prepare a statement of retained earnings

Landon paid $20,000 in dividends to each of the two stockholders in each of the three years. Prepare a statement of retained earnings for the year ended December 31, 2010.

Anticipated impacts upon operating efficiency

Midas. Read the "Midas" case study in Chapter 2 of your text. Answer questions 1through 4 in a two- to- four page paper in accordance with APA guidelines as outlined in the

Performance appraisal assignment

Write a paper describing how effective performance appraisals can increase employee performance. This paper should include sections on the strategic advantages of performanc

Assume that the land survey was for the building

Acquisition Costs of Realty Pollachek Co. purchased land as a factory site for $450,000. The process of tearing down two old buildings on the site and constructing the factory

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd