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Blossom Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2025. The terms of acquisition for each truck are described below. 1. 2. 3. 4. 1. Your answer is partially correct. 2. Prepare the appropriate journal entries for the above transactions for Blossom Corporation. (Round present value factors to 5 decimal places, e.g. 0.52587 and final answers to 2 decimal places, e.g. 52.75. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) 3. Truck #1 has a list price of $54,750 and is acquired for a cash payment of $50,735. Truck #2 has a list price of $58,400 and is acquired for a down payment of $7,300 cash and a zero-interest-bearing note with a face amount of $51,100. The note is due April 1, 2026. Blossom would normally have to pay interest at a rate of 9% for such a borrowing, and the dealership has a borrowing rate of 8%. No. Account Titles and Explanation 4. Truck #3 has a list price of $58,400. It is acquired in exchange for a computer system that Blossom carries in inventory. The computer system cost $43,800 and is normally sold by Blossom for $55,480. Blossom uses a perpetual inventory system. Truck #4 has a list price of $14,300. It is acquired in exchange for 1,020 shares of common stock in Blossom Corporation. The stock has a par value per share of $10 and a market price of $13 per share. Trucks Cash Trucks Discount on Notes Payable Notes Payable Cashi Trucks Cost of Goods Sold Inventory Sales Revenue Trucks Common Stock Paid-in Capital in Excess of Par - Common Stock Debit 50735.00 53801.00 4599.00 55480.00 43800.00 13260.00 Credit 50735.00 51100.00 7300.00 43800.00 55480.00 10200.00 3060.00

Blossom Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2025. The terms of acquisition for each truck are described below. 1. 2. 3. 4. 1. Your answer is partially correct. 2. Prepare the appropriate journal entries for the above transactions for Blossom Corporation. (Round present value factors to 5 decimal places, e.g. 0.52587 and final answers to 2 decimal places, e.g. 52.75. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) 3. Truck #1 has a list price of $54,750 and is acquired for a cash payment of $50,735. Truck #2 has a list price of $58,400 and is acquired for a down payment of $7,300 cash and a zero-interest-bearing note with a face amount of $51,100. The note is due April 1, 2026. Blossom would normally have to pay interest at a rate of 9% for such a borrowing, and the dealership has a borrowing rate of 8%. No. Account Titles and Explanation 4. Truck #3 has a list price of $58,400. It is acquired in exchange for a computer system that Blossom carries in inventory. The computer system cost $43,800 and is normally sold by Blossom for $55,480. Blossom uses a perpetual inventory system. Truck #4 has a list price of $14,300. It is acquired in exchange for 1,020 shares of common stock in Blossom Corporation. The stock has a par value per share of $10 and a market price of $13 per share. Trucks Cash Trucks Discount on Notes Payable Notes Payable Cashi Trucks Cost of Goods Sold Inventory Sales Revenue Trucks Common Stock Paid-in Capital in Excess of Par - Common Stock Debit 50735.00 53801.00 4599.00 55480.00 43800.00 13260.00 Credit 50735.00 51100.00 7300.00 43800.00 55480.00 10200.00 3060.00

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 10E: Hathaway Company purchased a copying machine for 8,700 on October 1, 2019. The machines residual...
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- Blossom Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2025. The terms of acquisition for each truck are described below. 1. 2. 3. 4. 1. Your answer is partially correct. 2. Prepare the appropriate journal entries for the above transactions for Blossom Corporation. (Round present value factors to 5 decimal places, e.g. 0.52587 and final answers to 2 decimal places, e.g. 52.75. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) 3. Truck #1 has a list price of $54,750 and is acquired for a cash payment of $50,735. Truck #2 has a list price of $58,400 and is acquired for a down payment of $7,300 cash and a zero-interest-bearing note with a face amount of $51,100. The note is due April 1, 2026. Blossom would normally have to pay interest at a rate of 9% for such a borrowing, and the dealership has a borrowing rate of 8%. No. Account Titles and Explanation 4. Truck #3 has a list price of $58,400. It is acquired in exchange for a computer system that Blossom carries in inventory. The computer system cost $43,800 and is normally sold by Blossom for $55,480. Blossom uses a perpetual inventory system. Truck #4 has a list price of $14,300. It is acquired in exchange for 1,020 shares of common stock in Blossom Corporation. The stock has a par value per share of $10 and a market price of $13 per share. Trucks Cash Trucks Discount on Notes Payable Notes Payable Cash Trucks Cost of Goods Sold Inventory Sales Revenue Trucks Common Stock Paid-in Capital in Excess of Par - Common Stock Debit 50735.00 53801.00 4599.00 55480.00 43800.00 13260.00 Credit 50735.00 51100.00 7300.00 43800.00 55480.00 10200.00 3060.00
Transcribed Image Text:- Blossom Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2025. The terms of acquisition for each truck are described below. 1. 2. 3. 4. 1. Your answer is partially correct. 2. Prepare the appropriate journal entries for the above transactions for Blossom Corporation. (Round present value factors to 5 decimal places, e.g. 0.52587 and final answers to 2 decimal places, e.g. 52.75. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) 3. Truck #1 has a list price of $54,750 and is acquired for a cash payment of $50,735. Truck #2 has a list price of $58,400 and is acquired for a down payment of $7,300 cash and a zero-interest-bearing note with a face amount of $51,100. The note is due April 1, 2026. Blossom would normally have to pay interest at a rate of 9% for such a borrowing, and the dealership has a borrowing rate of 8%. No. Account Titles and Explanation 4. Truck #3 has a list price of $58,400. It is acquired in exchange for a computer system that Blossom carries in inventory. The computer system cost $43,800 and is normally sold by Blossom for $55,480. Blossom uses a perpetual inventory system. Truck #4 has a list price of $14,300. It is acquired in exchange for 1,020 shares of common stock in Blossom Corporation. The stock has a par value per share of $10 and a market price of $13 per share. Trucks Cash Trucks Discount on Notes Payable Notes Payable Cash Trucks Cost of Goods Sold Inventory Sales Revenue Trucks Common Stock Paid-in Capital in Excess of Par - Common Stock Debit 50735.00 53801.00 4599.00 55480.00 43800.00 13260.00 Credit 50735.00 51100.00 7300.00 43800.00 55480.00 10200.00 3060.00
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