Tamarisk, Inc. purchased two trucks by issuing a $108,000, 5-year, zero-interest-bearing note to GEC Funding Inc. The market rate of interest for obligations of this nature is 11%. Prepare the journal entry to record the purchase of the two trucks. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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**Journal Entry for Purchase of Trucks**

Tamarisk, Inc. purchased two trucks by issuing a $108,000, 5-year, zero-interest-bearing note to GEC Funding Inc. The market rate of interest for obligations of this nature is 11%.

**Instructions:**

Prepare the journal entry to record the purchase of the two trucks. 

- **Note:** Round present value factor calculations to 5 decimal places (e.g., 1.25124) and final answers to 0 decimal places (e.g., 5,275). Credit account titles are automatically indented when the amount is entered. Do not indent manually.

**Journal Entry Table:**

| Account Titles and Explanation  | Debit | Credit |
|---------------------------------|-------|--------|
|                                 |       |        |
|                                 |       |        |
|                                 |       |        |

Please fill in the necessary account titles and amounts in the table above to complete the journal entry.
Transcribed Image Text:**Journal Entry for Purchase of Trucks** Tamarisk, Inc. purchased two trucks by issuing a $108,000, 5-year, zero-interest-bearing note to GEC Funding Inc. The market rate of interest for obligations of this nature is 11%. **Instructions:** Prepare the journal entry to record the purchase of the two trucks. - **Note:** Round present value factor calculations to 5 decimal places (e.g., 1.25124) and final answers to 0 decimal places (e.g., 5,275). Credit account titles are automatically indented when the amount is entered. Do not indent manually. **Journal Entry Table:** | Account Titles and Explanation | Debit | Credit | |---------------------------------|-------|--------| | | | | | | | | | | | | Please fill in the necessary account titles and amounts in the table above to complete the journal entry.
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