Working on my study guide, and want to make sure I get everything right since I am going to have to go off it for my test next week.
Janus Coat Company purchased a delivery truck on June 1 for $24,000, paying $8,000 cash and signing a 6%, 2-month note for the remaining balance. The truck is expected to depreciate $4,800 each year. Janus Coat Company prepares monthly financial statements.
Instructions:
(a) Prepare the general journal entry to record the acquisition of the delivery truck on June 1st.
(b) Prepare any adjusting journal entries that should be made on June 30th.
(c) Show how the delivery truck will be reflected on Janus Coat Company's balance sheet on June 30th