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. Prepare the appropriate journal entries for the above tra actions 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.) 2. 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 3. 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. 4. 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 0 46501 4599 0 0 55480 43800 0 0 13260 0 0 Credit 00000000000 50735 51100 7300 43800 55480 10200 3060
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. Prepare the appropriate journal entries for the above tra actions 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.) 2. 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 3. 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. 4. 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 0 46501 4599 0 0 55480 43800 0 0 13260 0 0 Credit 00000000000 50735 51100 7300 43800 55480 10200 3060
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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.
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.)
2.
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
3.
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.
4.
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
O
46501
4599
0
55480
43800
0
13260
O
0
Credit
0
50735
0
O
51100
7300
O
43800
55480
O
10200
3060
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