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On April 12, 2016, Pace Design purchased automobiles and trucks for a total price of $600,000,...

On April 12, 2016, Pace Design purchased automobiles and trucks for a total price of $600,000, paying cash of $50,000 and borrowing the balance from the bank to be repaid by April, 2025. The bank appraised the automobiles at $399,000 and the trucks at $171,000. Prepare the journal entry to record the purchase

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Answer #1
Journal entry
date explanation debit credit
12-Apr automobile and truck 600000
cash 50000
notes payable 550000
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