Haddad Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2019. The terms of acquisition for each truck are described below.
1. Truck #1 has a list price of $15,000 and is acquired for a cash payment of $13,900.
2. Truck #2 has a list price of $20,000 and is acquired for a down payment of $2,000 cash and a zero- interest-bearing note with a face amount of $18,000. The note is due April 1, 2020. Haddad 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 has a list price of $16,000. It is acquired in exchange for a computer system that Haddad carries in inventory. The computer system cost $12,000 and is normally sold by Haddad for $15,200. Haddad uses a perpetual inventory system.
4. Truck #4 has a list price of $14,000. It is acquired in exchange for 1,000 ordinary shares in Haddad Corporation. The shares have a par value per share of $10 and a market price of $13 per share.
Instructions
Prepare the appropriate journal entries for the foregoing transactions for Haddad Corporation. (Round computations to the nearest dollar.)