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Brighton Corporation purchased two new delivery vans for $112,000 on December 31, 2025. Brighton paid $12,000 and signed a $100,000, 5 year, 10% note for the balance. The note is to be paid off in five annual payments begining decembr 21, 2026. Assume the installments are to consist of equal amounts of principal plus accured interest. Prepare the journal entries to record (a) the purchase and (b) the second installment on December 31, 2027,

Brighton Corporation purchased two new delivery vans for $112,000 on December 31, 2025. Brighton paid $12,000 and signed a $100,000, 5 year, 10% note for the balance. The note is to be paid off in five annual payments begining decembr 21, 2026. Assume the installments are to consist of equal amounts of principal plus accured interest. Prepare the journal entries to record (a) the purchase and (b) the second installment on December 31, 2027,

FINANCIAL ACCOUNTING
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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Brighton Corporation purchased two new delivery vans for $112,000 on December 31, 2025. Brighton paid $12,000 and signed a $100,000, 5 year, 10% note for the balance. The note is to be paid off in five annual payments begining decembr 21, 2026. Assume the installments are to consist of equal amounts of principal plus accured interest. Prepare the journal entries to record (a) the purchase and (b) the second installment on December 31, 2027,
Transcribed Image Text:Brighton Corporation purchased two new delivery vans for $112,000 on December 31, 2025. Brighton paid $12,000 and signed a $100,000, 5 year, 10% note for the balance. The note is to be paid off in five annual payments begining decembr 21, 2026. Assume the installments are to consist of equal amounts of principal plus accured interest. Prepare the journal entries to record (a) the purchase and (b) the second installment on December 31, 2027,
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