Exercise 10-19 (Algo) Acquisition cost; multiple methods [LO10-1, 10-3, 10-4, 10-6] Connors Corporation acquired manufacturing equipment for use in its assembly line. Below are four independent situations relating to the acquisition of the equipment. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. The equipment was purchased on account for $44,000. Credit terms were 2/10, n/30. Payment was made within the discount period and the company records the purchases of equipment net of discounts. 2. Connors gave the seller a noninterest-bearing note. The note required payment of $46,000 one year from date of purchase. The fair value of the equipment is not determinable. An interest rate of 12% properly reflects the time value of money in this situation. 3. Connors traded in old equipment that had a book value of $15,500 (original cost of $33,000 and accumulated depreciation of $17,500) and paid cash of $41,000. The old equipment had a fair value of $10,100 on the date of the exchange. The exchange has commercial substance. 4. Connors issued 2,000 shares of its no-par common stock in exchange for the equipment. The market value of the common stock was not determinable. The equipment could have been purchased for $38,000 in cash. Required: For each of the above situations, prepare the journal entry required to record the acquisition of the equipment. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amount.) Answer is not complete. No Transaction General Journal Debit Credit 1 1 43,120 Equipment-new Accounts payable 43,120 2 2 41,071 X Equipment-new Discount on notes payable Notes payable 46.000 3 3 Equipment-new Accumulated depreciation Loss on exchange of assets Equipment-old Cash OOOOO oo 4 4 Equipment-new Common stock