x G hennepin tech-Google x 10.00 points Exercise 10-21 Acquisition cost, multipl

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x G hennepin tech-Google x 10.00 points Exercise 10-21 Acquisition cost, multiple methods L010-1, 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 (EV ot $1 PV of $1. FVA of $1. PVA oi S1. FVAD o $1 and PVAD ot S1) (Use appropriate factor/s) from the tables provided.) . The equipment was purchased on account for $37,000 Credit terms were 3/10, n/30 Payment was 2 Connors gave the seller a nonint made within the discount period and the company records the purchases of equipmernt net of discounts erest bearing note. The note required payment of $39 000 one year from date of purchase The fair value of the equipment is not reflects the time value af money in this situation determinable An interest rate of 10% property 3 Corriors traded old equipment that had a book value of S12.000 (onginal cost of accumulated depreciation of S14,000) and pad cash of $34,000. The old equipment had a fair value of ST,300 on the date of the exchange. The exchange has commercial substance 4 Connors issued 1,500 shares of its nopar common stock in exchange for the equipmert value of the $36,000 in cash eterminable The equipment could have been purchased for common stock was not The Required: For each of the above situations, prepare the jounal entry required to record the acqasition 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.) Journal entry worksheet Record the purchase of equipment on account TOSHIBA 2 3 4 5 tab

Explanation / Answer

Event General journal Debit Credit 1. Equipment(37000×97%) $35,890 Account payable $35,890 Account payable $35,890 Cash $35,890 2. Equipment($39000×.90909)using PV of $1 table $35,455 Discount on Notes Payable $3,545 Notes payable $39000 3 Equipment-New(balance amount) $41,300 Loss(12000-7300) $4,700 Accumulated depreciation $14,000 Equipment-old $26,000 Cash $34,000 4. Equipment $36,000 Common stock $36,000

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