I need help with this Accounting Question given. BE J0.5 (LO3) Garcia Corporation Purchased a truckby issuing an $8000, 4~Yenß zero-interest-bearing note to Eqminox Inc.The market rate of interestfor obligations of this nature is I09PrePare the journal entry torecord the Purchase of this truck.

BE 10.5 (LO3) Garcia Coreoration purchased a truck by issuing an $8000o, 4-Yeas zero-interest -bearing note to Earinox Inc The market rate of interest for obligations of this nature is I0You PrePare the jounal entry to record the Purchase of this truck.

BE 10.5 (LO3) Garcia Coreoration purchased a truck by issuing an $8000o, 4-Yeas zero-interest -bearing note to Earinox Inc The market rate of interest for obligations of this nature is I0You PrePare the jounal entry to record the Purchase of this truck.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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I need help with this Accounting Question given.

BE J0.5 (LO3) Garcia Corporation Purchased a truck
by issuing an $8000, 4~Yenß zero-interest
-bearing note to Eqminox Inc.
The market rate of interest
for obligations of this nature is I09
PrePare the journal entry to
record the Purchase of this truck.

Expert Solution

Step 1

Whenever an asset is purchased with the help of issuing some notes payable (liability) , then assets account will be increased and liability will also increase.

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