The following are independent situations. a. A company orders and receives 10 personal computers for office...

 

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The following are independent situations. a. A company orders and receives 10 personal computers for office use for which it signs a note promising to pay $20,000 within three months. b. A company purchases for $40,000 cash a new delivery truck that has a list ("sticker") price of $43,000. c. A women's clothing retailer orders 30 new display stands for $490 each for future delivery. d. A new company is formed and issues 100 shares of stock for $14 per share to investors. e. A company purchases a piece of land for $48,000 cash. An appraiser for the buyer valued the land at $55,100. f. The owner of a local company uses a personal check to buy a $19,500 car for personal use. Answer from the company's point of view. g. A company borrows $11,500 from a local bank and signs a six-month note for the loan. h. A company pays $3,400 owed on its 10-year notes payable (ignore interest). Required: 1. Indicate titles of the appropriate accounts, if any, affected in each of the preceding events. 2-a. At what amount would you record the delivery truck in (b)? 2-b. At what amount would you record the piece of land in (e)? 2-c. What measurement principle are you applying? 3-a. What reasoning did you apply in (c)? 3-b. For (f), what accounting concept did you apply? The following are independent situations. a. A company orders and receives 10 personal computers for office use for which it signs a note promising to pay $20,000 within three months. b. A company purchases for $40,000 cash a new delivery truck that has a list ("sticker") price of $43,000. c. A women's clothing retailer orders 30 new display stands for $490 each for future delivery. d. A new company is formed and issues 100 shares of stock for $14 per share to investors. e. A company purchases a piece of land for $48,000 cash. An appraiser for the buyer valued the land at $55,100. f. The owner of a local company uses a personal check to buy a $19,500 car for personal use. Answer from the company's point of view. g. A company borrows $11,500 from a local bank and signs a six-month note for the loan. h. A company pays $3,400 owed on its 10-year notes payable (ignore interest). Required: 1. Indicate titles of the appropriate accounts, if any, affected in each of the preceding events. 2-a. At what amount would you record the delivery truck in (b)? 2-b. At what amount would you record the piece of land in (e)? 2-c. What measurement principle are you applying? 3-a. What reasoning did you apply in (c)? 3-b. For (f), what accounting concept did you apply?

Answer rating: 100% (QA)

Answer 1 Titles of Accounts Affected EventAccount Titles a Purchase of computers on creditComputers ... View the full answer