On 21 October 2021, Truck Rentals Ltd purchased a new truck. The following information about the purchase
Fantastic news! We've Found the answer you've been seeking!
Question:
On 21 October 2021, Truck Rentals Ltd purchased a new truck. The following information about the purchase needs to be recorded:
- The price of the truck is $73,600 (including GST).
- The dealer arranged for sign writing on the truck for $2,691 (including GST).
- Insurance for 12 months on the truck cost $2,116 (including GST).
- An additional $322 (including GST) was paid for vehicle registration for 12 months.
- The company borrowed $63,200 to finance this purchase, while the remainder was paid in cash.
Required:
Prepare the journal entry for the purchase of the new truck and related items.
Truck Rentals Ltd’s General Journal:
Date | Account Names | Debit | Credit |
21/10/2021 | |||
(To record purchase of a truck and related items) |
Related Book For
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date: