On May 1, the Garnett Corporation wanted to purchase a $200,000 piece of equipment, but Garnett was

Question:

On May 1, the Garnett wanted to purchase a $200,000 piece of equipment, but Garnett was only able to furnish $75,000 of its own cash to purchase the equipment. Garnett borrowed the remainder of the $200,000 from the People's National Bank on a 3-year, 4% note.
Required:
If the company keeps its records on a calendar year, what adjusting entry should Garnett make on December 31?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...