Whispering 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 $33,150 and is acquired for a cash payment of $30,719. Truck #2 has a list price of $35,360 and is acquired for a down payment of $4,420 cash and a zero-interest-bearing note with a face amount of $30,940. The note is due April 1, 2026. Whispering would normally have to pay interest at a rate of 10% for such a borrowing, and the dealership has a borrowing rate of 8%. Truck #3 has a list price of $35,360. It is acquired in exchange for a computer system that Whispering carries in inventory. The computer system cost $26,520 and is normally sold by Whispering for $33,592. Whispering uses a perpetual inventory system. Truck #4 has a list price of $13,040. It is acquired in exchange for 920 shares of common stock in Whispering 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 Whispering 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 O for the amounts. List all debit entries before credit entries.)
Whispering 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 $33,150 and is acquired for a cash payment of $30,719. Truck #2 has a list price of $35,360 and is acquired for a down payment of $4,420 cash and a zero-interest-bearing note with a face amount of $30,940. The note is due April 1, 2026. Whispering would normally have to pay interest at a rate of 10% for such a borrowing, and the dealership has a borrowing rate of 8%. Truck #3 has a list price of $35,360. It is acquired in exchange for a computer system that Whispering carries in inventory. The computer system cost $26,520 and is normally sold by Whispering for $33,592. Whispering uses a perpetual inventory system. Truck #4 has a list price of $13,040. It is acquired in exchange for 920 shares of common stock in Whispering 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 Whispering 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 O for the amounts. List all debit entries before credit entries.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Whispering 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 $33,150 and is acquired for a cash payment of $30,719.
Truck #2 has a list price of $35,360 and is acquired for a down payment of $4,420 cash and a zero-interest-bearing note with a
face amount of $30,940. The note is due April 1, 2026. Whispering would normally have to pay interest at a rate of 10% for
such a borrowing, and the dealership has a borrowing rate of 8%.
Truck #3 has a list price of $35,360. It is acquired in exchange for a computer system that Whispering carries in inventory. The
computer system cost $26,520 and is normally sold by Whispering for $33,592. Whispering uses a perpetual inventory
system.
Truck #4 has a list price of $13,040. It is acquired in exchange for 920 shares of common stock in Whispering 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 Whispering 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 O for the amounts. List all debit entries
before credit entries.)
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