Question - Janus Coat Company purchased a delivery truck on July 1 for $30,000, paying $10,000 cash and signing a 6% note for the remaining balance. The truck is expected to depreciate $6,000 each year.
Instructions:
(a) In the space below, prepare the general journal entry to record the acquisition of the delivery truck on July 1st;
(b) List adjusting journal entries for December 31st;
(c) Show how the delivery truck will be reflected on Janus Coat Company's balance sheet on December 31st;