Skysong Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2025. The terms of acquisition for each truck are described below. 1. 2. 3. 4. Truck #1 has a list price of $24,150 and is acquired for a cash payment of $22,379. Truck #2 has a list price of $25,760 and is acquired for a down payment of $3,220 cash and a zero-interest- bearing note with a face amount of $22,540. The note is due April 1, 2026. Skysong would normally have to pay interest at a rate of 9% for such a borrowing, and the dealership has a borrowing rate of 8%. Truck #3 has a list price of $25,760. It is acquired in exchange for a computer system that Skysong carries in inventory. The computer system cost $19,320 and is normally sold by Skysong for $24,472. Skysong uses a perpetual inventory system. Truck #4 has a list price of $15,240. It is acquired in exchange for 1,090 shares of common stock in Skysong 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 Skysong 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. List all debit entries before credit entries.)
Skysong Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2025. The terms of acquisition for each truck are described below. 1. 2. 3. 4. Truck #1 has a list price of $24,150 and is acquired for a cash payment of $22,379. Truck #2 has a list price of $25,760 and is acquired for a down payment of $3,220 cash and a zero-interest- bearing note with a face amount of $22,540. The note is due April 1, 2026. Skysong would normally have to pay interest at a rate of 9% for such a borrowing, and the dealership has a borrowing rate of 8%. Truck #3 has a list price of $25,760. It is acquired in exchange for a computer system that Skysong carries in inventory. The computer system cost $19,320 and is normally sold by Skysong for $24,472. Skysong uses a perpetual inventory system. Truck #4 has a list price of $15,240. It is acquired in exchange for 1,090 shares of common stock in Skysong 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 Skysong 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. List all debit entries before credit entries.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
H1.
Transcribed Image Text:Skysong Corporation operates a retail computer store. To improve delivery services to customers, the company
purchases four new trucks on April 1, 2025. The terms of acquisition for each truck are described below.
1.
2.
3.
4.
1.
Prepare the appropriate journal entries for the above transactions for Skysong 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. List all debit
entries before credit entries.)
2.
Truck #1 has a list price of $24,150 and is acquired for a cash payment of $22,379.
Truck #2 has a list price of $25,760 and is acquired for a down payment of $3,220 cash and a zero-interest-
bearing note with a face amount of $22,540. The note is due April 1, 2026. Skysong would normally have to pay
interest at a rate of 9% for such a borrowing, and the dealership has a borrowing rate of 8%.
No. Account Titles and Explanation
3.
Truck #3 has a list price of $25,760. It is acquired in exchange for a computer system that Skysong carries in
inventory. The computer system cost $19,320 and is normally sold by Skysong for $24,472. Skysong uses a
perpetual inventory system.
4.
Truck #4 has a list price of $15,240. It is acquired in exchange for 1,090 shares of common stock in Skysong
Corporation. The stock has a par value per share of $10 and a market price of $13 per share.
Debit
NO
Credit
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