Question

Sarasota Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2020. The terms of acquisition for each truck are described below.

1.		Truck #1 has a list price of $22,350 and is acquired for a cash payment of $20,711.
2.		Truck #2 has a list price of $23,840 and is acquired for a down payment of $2,980 cash and a zero-interest-bearing note with a face amount of $20,860. The note is due April 1, 2021. Sarasota 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 $23,840. It is acquired in exchange for a computer system that Sarasota carries in inventory. The computer system cost $17,880 and is normally sold by Sarasota for $22,648. Sarasota uses a perpetual inventory system.
4.		Truck #4 has a list price of $20,860. It is acquired in exchange for 990 shares of common stock in Sarasota Corporation. The stock has a par value per share of $10 and a market price of $13 per share.

Prepare the appropriate journal entries for the above transactions for Sarasota Corporation. (Round present value factors to 5 decimal places, e.g. 0.52587 and final answers to 2 decimal places, e.g. 52.75. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Answer 1

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Credit Account Titles ond explnation Dehit NO. $20, Trueks #1 2011 cash $21,4 Trucks a 1846 Discourt on Notes payable 2980 cash Nodes payable 20, 860 PV of 20,860 $20, 860 x 090909 10. tr 1year 18, 963.6174 18,96 के २1,१५५ 11 = $ 18,964 $ 2980 TrucKs $22, 618 #3 COst of goods sold Imesdony Sales Revenue 1,830 22,648 TrucK i2,810 Common stock $1900 Paid in capstal in extess Par oMmon 5tock $2970 TrucKS 910 Shaves X 13 12,80 $ 9900 par value $ 29F0