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1. What are Adjusting journal entry's for 1/31/2019

(1/1/2019) ABC company bought a delivery truck, financed by Wells Fargo Bank. Paid $2,000 cash down, and owes $18,000. The truck cost $18,000, with sales tax of $1,440, and first year license $560, with monthly payments of $500.00 per month with interest at an annual rate of 5%.

(1/1/2019) ) ABC company bought Office equipment costing $5,000 from Office Depot for cash. The office equipment is expected to have a useful life of 5 years with a 10% salvage value

(1/31/2019) Record straight line depreciation on the new truck and equipment purchased during the month. The truck has an estimated useful life of 5 years with a 20% estimated salvage value, the office equipment has an estimated useful life of 8 years, with no estimated salvage value.

2. What are Adjusting journal entry's for 1/31/2019

(1/1/2019) ABC Company obtained a $20,000 loan (note payable) from Wells Fargo Bank. Proceeds of $20,000 were deposited in the checking account. The annual interest rate for the loan is 5%, interest payments are due monthly beginning 3/1/2019 with principal payments of $500.

(1/31/2019) .Reclassify the current portion of long-term debt: Wells Fargo Line of Credit $20,000 + Wells Fargo truck loan due in 1 year (12 x $500) $6,000.

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