Question: problem 33 analysis of transactions and preparation of the income...
Problem 3.3: Analysis of transactions and preparation of the
Income Statement and Balance Sheet
This is a continuation of Problem 2.4 which covered transactions for KFBS as of November 30. KFBS opened its first store on the 1st of December. The Balance Sheet for November is attached. Transactions and events during December were as follows. Prepare (a) journal entries and t-accounts for the following transactions, (b) an Income Statement for the month of December, and (c) a Balance Sheet as of the end of December. Remember to carry forward balances for Balance Sheet accounts from November.
(3) December 1: Purchased inventory management and anti-theft
equipment for the shopping floors for $120,000. The firm financed
the amount with a note payable from a local bank at an interest
rate of 10% each year.
Please provide the journal entry