On July 1, 2011, Collectors Inc. purchased a delivery truck from LBJ Trucks, costing $81,000. However, due to cash flow problems, Collectors Inc. is currently unable to make the payment. Therefore, in order to ensure LBJ Trucks for the payment, Collectors Inc. signed a one-year note with 6% interest per annum, to be payable at maturity. Collectors Inc.'s year-end is on December 31. Prepare all the necessary journal entries related to the notes payable from the time it is signed to the maturity date.



July 1 To record the purchase of delivery truck
Dec 31 To record interest accrued
Jun 30 To record the payment of note payable

Thanks a lot.

Jul 1 your accounts will be Delivery Truck and Notes Payable.

Dec 31 your accounts will be Interest Expense and Interest Payable.

Jun 30 your accounts will be Cash, Interest Expense, Interest Payable, and Notes Payable.