Chapter 10 - Chapter 10 EXERCISE 10-1(1520 minutes Land...

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Chapter 10 EXERCISE 10-1 (15–20 minutes) Item Land Land Improvements Building Other Accounts (a) ($275,000) Notes Payable (b) $275,000 (c) $ 10,000 (d) 7,000 (e) 6,000 (f) (1,000) (g) 25,000 (h) 250,000 (i) 9,000 (j) $ 4,000 (k) 11,000 (l) (5,000) (m) 13,000 (n) 19,000 (o) 14,000 (p) 3,000 EXERCISE 10-3 (10–15 minutes) 1. Truck #1. ............................................................... 13,900 Cash. ........................................................... 13,900 2. Truck #2. ............................................................... 18,364* Discount on Notes Payable. ............................... 1,636 Cash. ........................................................... 2,000 Notes Payable. ........................................... 18,000 *PV of $18,000 @ 10% for 1 year = $18,000 X .90909 = $16,364 $16,364 + $2,000 = $18,364 3. Truck #3. ............................................................... 15,200 Cost of Goods Sold. ............................................ 12,000
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.................................................... 12,000 Sales. ........................................................... 15,200 [Note to instructor : The selling (retail) price of the computer system appears to be a better gauge of the fair value of the consideration given than is the list price of the truck as a gauge of the fair value of the consideration received (truck). Vehicles are very often sold at a price below the list price.] 4. Truck #4. ............................................................... 13,000 Common Stock. .......................................... 10,000
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This note was uploaded on 03/10/2010 for the course ACCTG 100B taught by Professor Tu during the Fall '09 term at Golden Gate.

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Chapter 10 - Chapter 10 EXERCISE 10-1(1520 minutes Land...

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