Barbara McManus is the owner of Barbara's Shameless Boutique Corp. (BSBC), a newly incorporated company. Barbara...

 

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Barbara McManus is the owner of Barbara's Shameless Boutique Corp. (BSBC), a newly incorporated company. Barbara believes that she has a great concept but does not have a lot of money to start the business. Barbara is fairly resourceful, though, and has been able to arrange the following: (Click the icon to view the information.) Unfortunately, BSBC's target audience is a bit more prudish than she anticipated and sales have been slow. While the company was able to retire the bank loan on the due date, it had insufficient cash to pay off the furniture loan. The vendor agrees to accept 1,200 common shares in BSBC in settlement of the obligation. Barbara believed that the shares are worth $30 each, but as this was the first time that BSBC had issued shares to anyone other than Barbara, a fair market price was not yet established. BSBC's year-end date is June 30. The company's banker has suggested that an appropriate market rate for BSBC is 4% per annum for loans that mature in one year or less and 6% for loans with longer maturities. Required Requirement a. Prepare journal entries. (Use a financial calculator for any present value computations, and round your final answers to the nearest dollar. Record debits first, then credits. Explanations are not required.) i. Prepare the journal entry to record the purchase of the office furniture. Date July 1, 2023 Accounts ii. Prepare the journal entry to record the acquisition of the photocopier. Date August 1, 2023 Accounts Debit Credit Debit Credit Barbara McManus is the owner of Barbara's Shameless Boutique Corp. (BSBC), a newly incorporated company. Barbara believes that she has a great concept but does not have a lot of money to start the business. Barbara is fairly resourceful, though, and has been able to arrange the following: (Click the icon to view the information.) Unfortunately, BSBC's target audience is a bit more prudish than she anticipated and sales have been slow. While the company was able to retire the bank loan on the due date, it had insufficient cash to pay off the furniture loan. The vendor agrees to accept 1,200 common shares in BSBC in settlement of the obligation. Barbara believed that the shares are worth $30 each, but as this was the first time that BSBC had issued shares to anyone other than Barbara, a fair market price was not yet established. BSBC's year-end date is June 30. The company's banker has suggested that an appropriate market rate for BSBC is 4% per annum for loans that mature in one year or less and 6% for loans with longer maturities. Required Requirement a. Prepare journal entries. (Use a financial calculator for any present value computations, and round your final answers to the nearest dollar. Record debits first, then credits. Explanations are not required.) i. Prepare the journal entry to record the purchase of the office furniture. Date July 1, 2023 Accounts ii. Prepare the journal entry to record the acquisition of the photocopier. Date August 1, 2023 Accounts Debit Credit Debit Credit