Question
On January 1, 2019, Johnson Company purchased a delivery truck for $76,000, paying $5,000 cash and financing the rest with a 5 year, 8% note,
On January 1, 2019, Johnson Company purchased a delivery truck for $76,000, paying $5,000 cash and financing the rest with a 5 year, 8% note, with monthly payments of $1,440. Required: (1) Complete the loan amortization schedule below for the payments made on February 1 and March 1. (2) Prepare the journal entry for the purchase on January 1. (3) Prepare the journal entry for the first loan payment on February 1 Loan Amortization Schedule Date 1-Jan 1-Feb 1-Mar General Journal Date 1-Jan 1-Feb Payment Interest Principal Loan Balance 71,000 Account Debit Credit
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