On July 1, 2015, Nakhooda Limited purchased a truck for $40,000, paying $10,000 cash and signing a
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On July 1, 2015, Nakhooda Limited purchased a truck for $40,000, paying $10,000 cash and signing a 6% sixmonth bank loan payable for the remainder.
Prepare the journal entries to record each of the following:
(a) The purchase of the truck on July 1
(b) The accrual of interest at year end, December 31, assuming interest has not previously been accrued
(c) Repayment of the interest and the loan on January 1, 2016
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Related Book For
Financial Accounting Tools for Business Decision Making
ISBN: 978-1118644942
6th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
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