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On January 1 2011 Galaxy Sun Industries acquired a new piece of machinery and a used truck from Acme Equipment Company Galaxy Sun negotiated a price of $100000 for both items

On January 1, 2011, Galaxy Sun Industries acquired a new piece of machinery and a used truck from Acme Equipment Company. Galaxy Sun negotiated a price of $100,000 for both items. The fair market value of the equipment was $112,500, and the fair market value of the truck was $37,500. Galaxy Sun Industries signed a note with Acme to make the purchase. Prepare the journal entry to record the purchase of the equipment. Use Smart Entry when selection lists are not available to enter the account title in the Description column. Not sure about the account title? Click here to view the chart of accounts. - Assets Cash Accounts Receivable Allowance for Doubtful Accounts Notes Receivable Interest Receivable Inventory Supplies Prepaid Insurance Prepaid Rent Land Buildings Accumulated Depreciation—Buildings Office Equipment Accumulated Depreciation—Office Equipment Machine Accumulated Depreciation—Machine Truck Accumulated Depreciation—Truck

May 10 2020 View more View Less

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