Derrick Corporation purchased two new delivery vans for $85,000 on December 31,2015.Derrick paid $10,000 and signed a $75,000,5-year,12% note for the balance.The note is to be paid off in five annual payments beginning December 31,2016.Assume the installments are to consist of equal amounts of principal plus accrued interest.Prepare the journal entries to record the purchase and the second installment on December 31,2017.

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The Answer of Derrick Corporation purchased two new delivery vans for $85,000 on December 31,2015.Derrick paid $10,000 and signed a $75,000,5-year,12% note for the balance.The note is to be paid off in five annual payments beginning December 31,2016.Assume the installments are to consist of equal amounts of principal plus accrued interest.Prepare the journal entries to record the purchase and the second installment on December 31,2017.

Derrick Corporation Purchased Two New Delivery Vans for $85,000 on December