Exercise 10-3 - 12,000.00 Inventory 12,000.00 Sales...

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EXERCISE 10-3 (10–15 minutes) 1. Truck #1. .......................................................................... 13,900.00 Cash. ...................................................................... 13,900.00 2. Truck #2. .......................................................................... 14,727.26* Discount on Notes Payable . ..................................... 1,272.74 Cash. ...................................................................... 2,000.00 Notes Payable. .................................................... 14,000.00 *PV of $14,000 @ 10% for 1 year = $14,000 X .90909 = $12,727.26 $12,727.26 + $2,000.00 = $14,727.26 3. Truck #3. .......................................................................... 15,200.00 Cost of Goods Sold. ....................................................
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Unformatted text preview: 12,000.00 Inventory . ............................................................. 12,000.00 Sales. ..................................................................... 15,200.00 [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. .......................................................................... 13,000.00 Common Stock . ................................................. 10,000.00 Paid-in Capital in Excess of Par. .................. 3,000.00 (1,000 shares X $13 = $13,000) 10-17...
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This note was uploaded on 06/06/2010 for the course ACCOUNTING ac505 taught by Professor Khan during the Spring '10 term at DeVry Fremont.

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