Asked Oct 30, 2019

Pearl Enterprises purchased store equipment by making a $2,960 cash down payment and signing a 1-year, $34,040, 10% note payable. The purchase was recorded as follows. Correct the entry below

Equipment   40,404    
   Cash       2,960
   Notes Payable       34,040
   Interest Payable       3,404

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Step 1

Journal entry:


Journal entry is a set of economic events which can be measured in monet...

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