Skysong, Inc
Subject:AccountingPrice:2.87 Bought9
Skysong, Inc. purchased two trucks by issuing a $132,000, 6-year, zero-interest-bearing note to GEC Funding Inc. The market rate of interest for obligations of this nature is 9%.
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 O decimal places, e.g. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
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Answer:
| Account Tittle | Debit | Credit |
| Truck (132000X PVif@9% at 6 year) (132000X 0.596267) |
$78,707.24 | |
| Discount on Note Payables (BF) | $53,292.76 | |
| Note Payable | $132,000.00 |
