Question: please do the correct calculation as the example given On July 13, 2014, Vision Consulting Inc. purchased trucks and boats for a total price of

please do the correct calculation as the example given
On July 13, 2014, Vision Consulting Inc. purchased trucks and boats for a total price of $590,000, by borrowing the full balance from the bank to be repaid within 12 months. The bank appraised the trucks at $220,000 and the boats at $330,000. Enter an appropriate description, and enter the date in the format dd/mmm (i.e., 15/Jan). General Journal Page GJ2 Date Account/Explanation F Debit Credit 31/Jul Trucks + Boats Long-Term Notes Payable. The question was: On April 26, 2014, ABC Inc. purchased trucks and boats for a total price of $500,000, by borrowing the full balance from the bank to be repaid by April, 2021. The bank appraised the trucks at $288,000 and the boats at $192,000. Enter an appropriate description, and enter the date in the format dd/mmm (.e., 15/Jan). Page GJ2 Credit F Debit Your solution was: General Journal Date Account/Explanation 26/Apr Trucks Boats Short-Term Notes Payable... 500,000 480,000 Marking: 'Trucks' should be debited for the amount of $300,000, but you have not done this. This will cost you 1 mark. 'Boats' should be debited for the amount of $200,000, but you have not done this. This will cost you 1 mark. You have not included the 'Long-Term Notes Payable account in this journal entry. This will cost you 3 marks. 'Short-Term Notes Payable' should not have been included in this journal entry. Any amounts entered for this account will not be evaluated. You have not entered a description for this transaction. However you will not lose any marks for this. Total marks for this question: 0
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
