Post the following transactions using the general
journal:
A. A wholesaler has a 2006 Taurus for $10,200,
a 2004 F-150 for $20,100 and a 2002 Explorer for $15,500 you want to purchase
for the used car lot. A single check
can be cut for all three vehicles at once through a payable account. (Hint: There a two transactions in the
journal.) Assign stock numbers UC0004,
UT0002, and UT0003.
B. A new
Ford F-150 is stocked in to the dealership.
The VIN is 2FRX17284CA8433.
MSRP is $25,200 and the Invoice cost is $21,500.00. Ford allows a $70.00 Advertising Allowance,
a $215.00 Floor Plan Allowance, and $95.00 for Prep & Conditioning. Holdback is 3% of MSRP. The stock number assigned to the vehicle is
NT50001.
C. A new
Ford Mustang Convertible is stocked in to the dealership. The VIN is 1FAFP44684F194183. MSRP is $25,400.00 and the Invoice cost is
$23,500.00. Ford allows an $85.00
Advertising Allowance, a $225.00 Floor Plan Allowance, and $80.00 for Prep
& Conditioning. Holdback is 3% of
MSRP. The stock number assigned to the
vehicle is NC50001.
D. A
customer paying cash from an outside finance source agrees to a base selling
price of $25,000.00 for the Mustang Convertible you stocked in during C. The customer does not want insurance but
does agree to purchase an ESP for $750.00 which costs the dealership
$350.00. There are no rebates on this
vehicle. The customer’s trade in is
valued at $4,000.00 and the dealership allows $4,500.00 and there is no
outstanding lien. Tax is 5% of the
base vehicle selling price. License
and registration is $375.00 and there is a $100.00 documentation processing
fee.
E. A customer agrees to a base selling price
of $23,500.00 for the Ford F-150 you stocked in on B. They also opt for a Credit Life Insurance
Policy for $900.00 and an ESP contract for $700.00. The Insurance costs the dealership $550.00
and the ESP contract costs $300.00.
The customer put a $500.00 deposit down initially and will pay an
additional $2,500.00 cash down. The
customer is also applying a $500.00 rebate to the down payment. The Customer has a trade in worth $6,000.00
and the dealership allows $7,000.00.
The outstanding lien balance on the trade is $4,000.00. Tax is 5% of the base selling price of the
vehicle and there are license and registration fees of $400.00. The dealership charges $150.00 for
documentation processing fees. The
reserve on the financing is $2,000.00 and the dealer retains 70%.
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https://coursesolver.com/wp-content/uploads/2020/04/csesolpxel-300x52.png00adminhttps://coursesolver.com/wp-content/uploads/2020/04/csesolpxel-300x52.pngadmin2019-07-02 03:57:152019-07-02 03:57:15Thank you in advance for your assistance.
