The following are independent situations. a. A company orders and receives 10 personal computers for office use for which it signs a note promising to pay $20,000 within three months. b. A company purchases for $30,000 cash a new delivery truck that has a list (sticker") price of $33,000. c. A women's clothing retailer orders 30 new display stands for $390 each for future delivery. d. A new company is formed and issues 100 shares of stock for $14 per share to investors. e. A company purchases a piece of land for $59,000 cash. An appraiser for the buyer valued the land at $63,300. The owner of a local company uses a personal check to buy a $14,500 car for personal use. Answer from the company's point of view. g. A company borrows $6,500 from a local bank and signs a six-month note for the loan. h. A company pays $2,400 owed on its 10-year notes payable (ignore interest).
The following are independent situations. a. A company orders and receives 10 personal computers for office use for which it signs a note promising to pay $20,000 within three months. b. A company purchases for $30,000 cash a new delivery truck that has a list (sticker") price of $33,000. c. A women's clothing retailer orders 30 new display stands for $390 each for future delivery. d. A new company is formed and issues 100 shares of stock for $14 per share to investors. e. A company purchases a piece of land for $59,000 cash. An appraiser for the buyer valued the land at $63,300. The owner of a local company uses a personal check to buy a $14,500 car for personal use. Answer from the company's point of view. g. A company borrows $6,500 from a local bank and signs a six-month note for the loan. h. A company pays $2,400 owed on its 10-year notes payable (ignore interest).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:The following are independent situations.
a. A company orders and receives 10 personal computers for office use for which it signs a note promising to pay $20,000 within three
months.
b. A company purchases for $30,000 cash a new delivery truck that has a list ("sticker") price of $33,000.
c. A women's clothing retailer orders 30 new display stands for $390 each for future delivery.
d. A new company is formed and issues 100 shares of stock for $14 per share to investors.
e. A company purchases a piece of land for $59,000 cash. An appraiser for the buyer valued the land at $63,300.
The owner of a local company uses a personal check to buy a $14,500 car for personal use. Answer from the company's point of
view.
9. A company borrows $6,500 from a local bank and signs a six-month note for the loan.
h. A company pays $2,400 owed on its 10-year notes payable (ignore interest).
Required:
1. Indicate titles of the appropriate accounts, if any, affected in each of the preceding events.
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?
3-a. What reasoning did you apply in (c)
3-b. For (7), what accounting concept did you apply?
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Indicate titles of the appropriate accounts, if any, affected in each of the preceding events. (If no entry is required for a
transaction/event select "No transaction in the first account field.)
Given
(0)|
(b)
(c)
(d)
(e)
(
(9)
(h)
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Received
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