2. Light Corporation purchased two new delivery vans for $85,000 on December 31, 2019. Light Corp paid $10,000 and signed a $75,000, 5-year, 12% note
2. Light Corporation purchased two new delivery vans for $85,000 on December 31, 2019. Light Corp paid $10,000 and signed a $75,000, 5-year, 12% note for the balance. The note is to be paid off in 5 annual payments beginning December 31, 2020. Assume the installments are to consist of equal amounts of principal plus accrued interest. REQUIRED: Prepare the journal entries to record the purchase and the second instalment on December 31, 2020.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Authors: David Marshall, Wayne William McManus, Daniel Viele
6th Edition
0072834641, 978-0072834642
