Your answer is partially correct. Try again. Riverbed Corporation purchased a tr

Question

Your answer is partially correct. Try again. Riverbed Corporation purchased a truck by issuing an $104,000 4-year, zero-interest-bearing note to Equinox Inc. The market rate of interest for obligations of this nature is 10% Prepare the journal entry to record the purchase of this truck. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275. Credit account titles are automaticalily indented when amount is entered. Do not indent manually. I no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit rucks 22644 Discount on Notes Payable 22644 Notes Payable 104000

Explanation / Answer

Riverbed Corp.

Account Titles

Debit

Credit

Truck

71033

Discount on notes payable

32967

Notes payable

104000

Explanation:

Truck= ($104000 x 0.68301) = $71033

Pearl Inc.

Fair value

% of Total

Cost

Recorded Amount

Land

63600

63600/381600

x 333900

55650

Building

233200

233200/381600

x 333900

204050

Equipment

84800

x 333900

74200

Total

381600

$333900

Swifty Corp.

Account Titles

Debit

Credit

Equipment

4620

Accumulated Depreciation-Trucks

25200

Gain on disposal of trucks

1120

Trucks

28000

Cash

700

Account Titles

Debit

Credit

Truck

71033

Discount on notes payable

32967

Notes payable

104000

Related Questions

Navigate

• Browse (All)
• Browse Y
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.