Make a journal entry to record the purchase of truck


Solve the below problem:

Q: Garcia Corporation purchased a truck by issuing an $112,800, 5-year, zero-interest-bearing note to Equinox Inc. The market rate of interest for obligations of this nature is 11%. Prepare the journal entry to record the purchase of this truck. ( e.g. $45,892. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit 1. 2. 3.

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Accounting Basics: Make a journal entry to record the purchase of truck
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