6 Chavez Corporation purchased a truck by issuing an $80,000, four-year, non- interest-bearing note to Equinox Inc. The market interest rate for obligations of this nature is 12%. Prepare the journal entry to record the truck purchase.
Answer to relevant QuestionsMartin Corporation purchased a truck by issuing an $80,000, 12% note to Equinox Inc. Interest is payable annually and the note is payable in four years. Prepare the journal entry to record the truck purchase. 11 Jackson Corporation operates a retail computer store. To improve its delivery services to customers, the company purchased four new trucks on April 1, 2014. The terms of acquisition for each truck were as follows: 1. ...Wen Corp., located in Manitoba, both purchases and constructs various pieces of equipment that it uses in its operations. The following items are for two different pieces of equipment and were recorded in random order during ...On January 1, 2 014, the accounting records of Sasseville Ltee included a debit balance of $15 million in the building account and of $12 million in the related accumulated depreciation account. The building was purchased in ...Giesen Corp. purchased land with two old buildings on it as a factory site for $460,000. The property tax assessment on this property was $350,000: $250,000 for the land and the rest for the buildings. It took six months to ...
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