11 Jackson Corporation operates a retail computer store. To improve its delivery services to customers, the company purchased four new trucks on April 1, 2014. The terms of acquisition for each truck were as follows:
1. Truck #1 had a list price of $17,000 and was acquired for a cash payment of $15,900.
2. Truck #2 had a list price of $18,000 and was acquired for a down payment of $2,000 cash and a non-interest-bearing note with a face amount of $16,000. The note is due April 1, 2015. Jackson would normally have to pay interest at a rate of 10% for such a borrowing, and the dealership has an incremental borrowing rate of 8%.
3. Truck #3 had a list price of $18,000. It was acquired in exchange for a computer system that Jackson carries in inventory. The computer system cost $13,500 and is normally sold by Jackson for $17,100. Jackson uses a perpetual inventory system.
4. Truck #4 had a list price of $16,000. It was acquired in exchange for 1,000 common shares of Jackson Corporation. The common shares are no par value shares with an active market value of $15 per share.
Instructions
(a) Prepare the appropriate journal entries for Jackson Corporation for the above transactions, assuming that Jackson prepares financial statements in accordance with !FRS. If there is some uncertainty about the amount, give reasons for your choice.
(b) Would the journal entries for transaction 4 provided in part (a) differ if Jackson prepares financial statements in accordance with ASPE?