User Account

All Pages

Prepare the journal entry to record the purchase

Assignment Help Accounting Basics
Reference no: EM132514198

Question - Pronghorn Ltd. wished to purchase some new equipment for its factory. However, due to recent cash flow difficulties, Pronghorn did not have enough cash on hand to complete the transaction. The equipment's vendor agreed to accept 1,240 common shares in Pronghorn in exchange for the equipment. Pronghorn's shares were actively trading at $13.82/share on the day of the exchange.

Required -

a. Prepare the journal entry to record the purchase of the equipment on Pronghorn's books, assuming that the list price for the equipment was $15,500.

b. Prepare the journal entry assuming Pronghorn was a private company whose shares do not trade actively and that the equipment had a quoted fair value of $18,277.

Reference no: EM132514198

Questions Cloud

What is the firms total corporate value : The FCFs are expected to continue growing at a 5.0% rate after Year 3. What is the firm's total corporate value (in millions)
How can firms cope with huge variability in customer demand : 1. How can firms cope with huge variability in customer demand? 2. What is the relationship between service and inventory levels?
Calculate the contribution margin for units : 25,000 units of the product when SHC made the offer. What is the minimum price per unit that Alton should accept for the modified product?
Identify the major historical influences and current issues : Identify the major historical influences and current issues affecting early childhood education today. Analyze the influence the classroom environment.
Prepare the journal entry to record the purchase : Prepare the journal entry to record the purchase of the equipment on Pronghorn's books, assuming that the list price for the equipment was $15,500
What is the difference between TKIP and CCMP : What is the basic building block of an 802.11 WLAN? Is a distribution system a wireless network? What is the difference between TKIP and CCMP?
Construct a daily diet and exercise plan : Construct a daily diet and exercise plan for someone who is overweight and suffers from high cholesterol.
Construct a daily diet and exercise plan : Construct a daily diet and exercise plan for someone who is overweight and suffers from high cholesterol.
Find what is annual volume that would make the company : Assume that machine A has already been purchased. Is it preferable to use machine A to make the switches or to purchase the switches.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Write a report for kerry melrose

Write a report for Kerry Melrose which shows: the payback period of the project, the net present value of the project using a discount rate of 12%

  X comapny produces a single product last year it

x comapny produces a single product. last year it manufactured 17000 units and sold 13000 units. production costs for

  What are the key management assertions related to cash

What are the key management assertions related to cash? What are the most important assertions related cash? How will auditors test these assertions?

  Discuss what your interpretation of strategic shift means

Prepare a summary report of the Technical Line from Ernst. Discuss what your interpretation of strategic shift means and how does this compare to the textbook.

  Calculate the break-even point in sales revenue

Prices and cost relationships are expected to be maintained over a range of 1,000 to 10,000 units. Calculate the break-even point in sales revenue

  Real property tax and person liability

The real property tax year in Adams County is the calendar year. The real property tax becomes a person liability of the owner of real property on January 1 in the current real property tax year 2009.

  Determine the cost of goods manufactured for the month

Mat Corporation's actual manufacturing overhead cost for the month ended March 31 was $78,000. Determine the Cost of Goods Manufactured for the month

  Cost flows and overhead application cleveland metals uses a

cost flows and overhead application cleveland metals uses a job cost system and applies factory overhead to production

  Discuss about inventory fraud

Discuss about Inventory Fraud,personal opinion and facts about Inventory Fraud. what do you think about this topic? Is it ethical? provide some facts as well.

  Sales mix of portable grills to stationary grill smokers

Contribution Margin Ratio, Break-Even Sales Revenue, and Margin of Safety for Multiple-Product Firm Texas-Q Company produces and sells barbeque grills.

  Calculate the amount of the allowance for doubtful accounts

Calculate the amount of the Allowance for Doubtful Accounts that should appear on the December 31, of the current year, balance sheet

  Create a brief presentation for your investors

Create a brief presentation for your investors analyzing the pros and cons of using ABC, including a comparison of at least two of the activity rates.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd