Question

On December 31, 2017, Cheyenne Company acquired a computer from Plate Corporation by issuing a $548,000 rero-interest-bearing note, payable in lon December 31, 2021. Cheyenne Company's credit rating permits to borrow funds from its several lines of credit at 10%. The computer is expected to have a 5-year re and a $72,000 salvage value Your answer is correct. Prepare the journal entry for the purchase on December 31, 2017. (Round present value factor calculations to decimal places 1.25124 and the al answer to decimal places g. 5,971. I no entry is required, select "No Entry for the account titles and enter for the amount Credit account titles are automatically indented when amount is entered. Do not Indent manually) Account Titles and Explanation December 31, 2017 Equipment Discount on Notes Payable Notes Payable ! Your answer is partially correct. Try again Prepare any necessary adjusting entries relative to depreciation (use straight-line) and amortization (use effective interest method) on December 31, 2018. (Round answers to decimal places, 9. 38,548. Ir no entry is required, select "No Entry for the account titles and enter for the amounts Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation December 31, 2018 Depreciation Expense Accumulated Depreciation Equipment (To record the depreciation) December 31, 2018 interest Expense 37429

Answer 1

Everything else looks good, so I am only giving the Amortization Schedule. In case you require anything else let me know in the comment section

Date	Debit Interest Expense, credit discount on Notes Payable	Carrying amount of Note
12/31/2017		374289
12/31/2018	37429	411718
12/31/2019	41172	452890
12/31/2020	45289	498179
12/31/2021	49821	548000