Your answer is partially correct. Try again. Riverbed Corporation purchased a tr
ID: 2518369 • Letter: Y
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 104000Explanation / 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