Polar Company purchased a Truck for the company use. The price was $48,000 plus 7% sales taxes. Company paid $5,000 in cash and signed a 4.75% note that requires 40 equal monthly payment at the end of each month for the rest.
Requirement:
a) Provide the journal entry that must be made on the purchase date of truck.
b) Determine the amount of monthly payment that must be made.
c) Provide the journal entry that company must make the for 2nd monthly payment.
D) Provide the journal entry that company must make on the last monthly payment.

Answer rating: 100% (QA)

a Journal entry on the purchase date of the truck Date Purchase Date Debit Truck Cost 48000 Debit Sa... View the full answer