Agropur Corporation purchased a truck by issuing an $81,690, 13% note to Atlas I

Question

Agropur Corporation purchased a truck by issuing an $81,690, 13% note to Atlas Inc. Interest is payable annually and the note is payable in four years. Prepare the journal entry to record the truck purchase. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation

Debit

Credit

__________________

___________________

Account Titles and Explanation

Debit

Credit

Explanation / Answer

Since there is increase in the asset account , hence debited and note payable liability is increased,hence Credited.

Accounts and Explanation Debit Credit Truck 81690 13% notes Payable 81690 ( To record the purchase of truck using 13% notes payable)

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.