Question

View Policies Current Attempt in Progress On July 1, 2018, Nakhooda Limited received an 18-month loan for $49,600 from a bank at 6% and with these funds and another $15,900 cash, purchased a vehicle for $65,500. Prepare the journal entries to record each of the following on Nakhooda's books: (a) The purchase of the vehicle on July 1, 2018. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit July 1, 2018 eTextbook and Media List of Accounts Attempts: 0 of 3 used Submit Answer Save for Later

Answer 1

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Naming convention of account title can be slightly different per question format: Solution: Credit Date July 1, 2018 Debit $ 65,500 Journal entries Account title and explaination Vehicle Note payable Cash (To record the purchase of vehicle) $ 49,600 $ 15,900