Hair Inc purchased a car for employees to use when driving to off site haircuts. Record as hair equipment. Cost of the car is $21,000, $10,000 is paid in cash and the reminder is financed with a 3 yr 8% note payable the principle amount being paid in full December 1 2009 interest is paid annually each December 1 beginning December first
For posting on the general journal do I
Debit hair equipment(car) $21,000
Credit cash $10,000
Credit long term notes payable $11,000
