Prepare the journal entry to record the purchase

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Question - Simons Equipment Ltd. purchased a delivery truck on June 1 for $42,000, paying $8,000 cash and signing a 6%, 2-month note for the remaining balance. The estimated useful life of the truck is expected to be 5 years. Simons prepares monthly financial statements.

Instructions

(a) Prepare the journal entry to record the purchase of the delivery truck on June 1.

(b) Prepare any adjusting journal entries that should be made on June 30.

(c) Show how the delivery truck will be reflected on Simons Equipment's statement of financial position at June 30.

Reference no: EM132034678

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