Harvey Auto Parts purchased a new crane on September 1 for $35,000, paying $10,000 cash and...

 

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Harvey Auto Parts purchased a new crane on September 1 for $35,000, paying $10,000 cash and signing a 7%, 12-month note for the remaining balance, interest to be paid at maturity. The crane is expected to have a 20-year useful life. Harvey Auto Parts prepares annual financial statements every December 31. Instructions Prepare the general journal entry to record the acquisition of the crane on September 1. b) Prepare any adjusting journal entries that should be made at year end, December 31. c) Show how the crane will be reflected on Harvey Auto Parts' balance sheet on December 31. Harvey Auto Parts purchased a new crane on September 1 for $35,000, paying $10,000 cash and signing a 7%, 12-month note for the remaining balance, interest to be paid at maturity. The crane is expected to have a 20-year useful life. Harvey Auto Parts prepares annual financial statements every December 31. Instructions Prepare the general journal entry to record the acquisition of the crane on September 1. b) Prepare any adjusting journal entries that should be made at year end, December 31. c) Show how the crane will be reflected on Harvey Auto Parts' balance sheet on December 31.

Answer rating: 100% (QA)

a The general journal entry to record the acquisition of the crane on September 1 is as follows Date ... View the full answer