As the company is growing, it buys a second service van from Ford for $27,000. The down payment of $7,000 paid using Check 1022. The remaining balance of $20,000 is financed by signing a four year, 7% note. The vehicle has a five-year useful life and a salvage value of $14,000. Payments are due on the first day of the following month. The straight-line depreciation method is used.

State the

A. Check

B. Journal Entry