Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. sweet ltd. wished to purchase some new equipment f

Sweet Ltd. wished to purchase some new equipment for its factory. However, due to recent...

80.2K

Verified Solution

Question

Accounting

image

Sweet Ltd. wished to purchase some new equipment for its factory. However, due to recent cash flow difficulties, Sweet did not have enough cash on hand to complete the transaction. The equipment's vendor agreed to accept 1,300 common shares in Sweet in exchange for the equipment. Sweet's shares were actively trading at $14.50/share on the day of the exchange. (a) Your answer is partially correct. Prepare the journal entry to record the purchase of the equipment on Sweet's books, assuming the list price for the equipment was $20,540. (Credit account titles are automatically indented when the 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.) Account Titles and Explanation Debit Credit Equipment 20540 Common Shares 20540

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Chemistry
1.2K views

Part A) A sample of a gas at 25°C and 1.0 atm pressure has a volume...

Physics
1.2K views

The spring shown in the figure is unstretched when a man starts pulling the block...

Basic Math
1.2K views

valuate the line integral where C is the given curve xyz ds C is the...

Statistics
1.2K views

When a defendant files a n defense he is attacking the plaintiff s pleading as...

Accounting
1.2K views

Blossom Company sells three different categories of tools (small, medium, and large)....

Accounting
1.2K views

Each of the following transactions are related to revenue recognition. Identify whether each...

Accounting
1.2K views

A company has a minimum required rate of return of 9%. It is considering investing...

Accounting
1.2K views

Tamarisk Companys balance sheet at December 31, 2021, is presented as follows. ...

Accounting
1.2K views

You own an operate a small computer store on November 11 you sell computer merchandise...

Finance
1.2K views

CALCULATE the Total Debt/Total Asset Ratio, Earnings Per Share, Total Assets Turnover Ratio, Net Profit...

Accounting
1.2K views

Use the following information to calculate cash received from dividends: Dividends revenue : $71,500 Dividends...

Accounting
1.2K views

In the first month of operations, Mordica Company made three purchases of merchandise in the...