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Derrick Corporation Purchased Two New Delivery Vans for $85,000 on December

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Derrick Corporation purchased two new delivery vans for $85,000 on December 31,2015.Derrick paid $10,000 and signed a $75,000,5-year,12% note for the balance.The note is to be paid off in five annual payments beginning December 31,2016.Assume the installments are to consist of equal amounts of principal plus accrued interest.Prepare the journal entries to record the purchase and the second installment on December 31,2017.


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Theory

A system of ideas intended to explain something, often based on general principles independent of the thing to be explained.

Hypothesis

A proposed explanation made on the basis of limited evidence as a starting point for further investigation.

Testable

Capable of being tested or subjected to examination and verification.

Upper Limb Length

The measurement from the top of the shoulder to the tip of the fingers, reflecting the dimensions of the arm and hand.

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