Transaction 2 - $5,000. A liability account (notes payable)...

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Transaction 2 : On April 2, Mr. Green purchases a $15,000 used truck by paying $5,000 in cash and  signing a $10,000 note payable, which is due in eighteen months. One asset account (vehicles)  increases and is debited for $15,000. Another asset account (cash) decreases and is credited for 
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Unformatted text preview: $5,000. A liability account (notes payable) increases and is credited for $10,000. The shaded areas below provide a reference for the transaction's position in the journal and ledger accounts. They are not part of the current entry....
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This note was uploaded on 11/14/2011 for the course ACCT 1310 taught by Professor Staff during the Fall '10 term at Texas State.

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