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,

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
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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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