Concord 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 $40,350 and is acquired for a cash payment of $37,391.2. **Truck #2** has a list price of $43,040 and is acquired for a down payment of $5,380 cash and a zero-interest-bearing note with a face amount of $37,660. The note is due April 1, 2021. Concord would normally have to pay interest at a rate of 9% for such a borrowing, and the dealership has an incremental borrowing rate of 8%.3. **Truck #3** has a list price of $43,040. It is acquired in exchange for a computer system that Concord carries in inventory. The computer system cost $32,280 and is normally sold by Concord for $40,888. Concord uses a perpetual inventory system.4. **Truck #4** has a list price of $37,660. It is acquired in exchange for 900 shares of common stock in Concord Corporation. The stock has a par value per share of $10 and a market price of $13 per share. **Journal Entries Overview**This table contains a detailed list of several journal entries, highlighting the accounting processes for various transactions. The columns represent account titles, debit, and credit amounts.1. **Entry 1:** - **Trucks:** Debit $37,391 - **Cash:** Credit $37,391 This signifies the purchase of trucks paid in cash, reflecting an increase in asset (Trucks) and a decrease in another asset (Cash).2. **Entry 2:** - **Trucks:** [Debit not shown] - **Discount on Notes Payable:** [Debit not shown] - **Cash:** Credit $5,380 - **Notes Payable:** Credit $37,660 This transaction likely involves the acquisition of trucks, partially financed through notes payable, with a cash component and some discount applied on the notes.3. **Entry 3:** - **Trucks:** Debit $40,888 - **Cost of Goods Sold (COGS):** Debit $32,280 - **Inventory:** Credit $32,280 - **Sales Revenue:** Credit $40,888 This entry records the sale of trucks with corresponding revenue and associated costs, impacting inventory.4. **Entry 4:** - **Trucks:** Debit $11,700 - **Common Stock:** Credit $9,000 - **Paid-in Capital in Excess of Par - Common Stock:** Credit $2,700 Reflects the issuance of common stock for trucks, with the equity being divided into par value and additional paid-in capital.This layout provides a comprehensive overview suitable for educational purposes, illustrating the double-entry system in accounting.

A journal entry is a basic accounting record that is used to chronologically track financial…

60. The note is due April 1, 2021. Concord would normally have to pay interest at a rate of 99 alership has an incremental borrowing rate of 8%. of $43,040. It is acquired in exchange for a computer system that Concord carries in invento $32,280 and is normally sold by Concord for $40,888. Concord uses a perpetual inventory sy of $37,660. It is acquired in exchange for 900 shares of common stock in Concord Corporati

60. The note is due April 1, 2021. Concord would normally have to pay interest at a rate of 99 alership has an incremental borrowing rate of 8%. of $43,040. It is acquired in exchange for a computer system that Concord carries in invento $32,280 and is normally sold by Concord for $40,888. Concord uses a perpetual inventory sy of $37,660. It is acquired in exchange for 900 shares of common stock in Concord Corporati

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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