Allen Coat Company purchased a delivery truck on June 1 for $18,000, paying $8,000 cash and signing a 5%, two-month note for the remaining balance, interest to be paid at maturity. The truck is expected to have a six-year useful life. Allen Coat Company prepares monthly financial statements.
Instructions
a. Prepare the general journal entry to record the acquisition 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 Allen Coat Company's balance sheet on June 30.

Question

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The Answer of Allen Coat Company purchased a delivery truck on June 1 for $18,000, paying $8,000 cash and signing a 5%, two-month note for the remaining balance, interest to be paid at maturity. The truck is expected to have a six-year useful life. Allen Coat Company prepares monthly financial statements.
Instructions
a. Prepare the general journal entry to record the acquisition 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 Allen Coat Company's balance sheet on June 30.

Allen Coat Company Purchased a Delivery Truck on June 1