Question

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Show Attempt History Current Attempt in Progress On December 31, 2020, Pina Company acquired a computer from Plato Corporation by issuing a $660,000 zero-interest-bearing note, payable in full on December 31, 2024. Pina Company's credit rating permits it to borrow funds from its several lines of credit at 10%. The computer is expected to have a 5-year life and a $73,000 salvage value. Your answer is correct Prepare the journal entry for the purchase on December 31, 2020. (Round present value factor calculations to 5 decimal places, eg. 1.25124 and the final answers to decimal places e.g. 58,971. If no entry is required, select "No Entry" for the account titles and entero for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit December Equipment 450787 31, 2020 Discount on Notes Payable 209213 Notes Payable 660000 e Textbook and Media 14 o .

Answer 1

Ary ) Credit Debit 450,787 204, 213 Account listen and Explanation Equipment Discount on notes payable Notes payable 31 Dec 2020 660,000 21 31 Dec 2021 75,557 Depreciation Exp Accumlated Dep. - Equipment (To record the depreciation) 75,557 31 Dec Interest Esp 45074 45,079 Discount on Notes Payable (To camortize the discount) 75,557 75,557 2022 Depucation Eup 31 Dec Accumlated bep.- Equipment To record the depreciation sinec Interest Eupense Discount on Notes Payable (To amortize the discount) 49,587 49,587 Nok 2) 6450,787 - 73,000)/5 =$75,55704 Depreciation Eup. = $ 75,557 3) Deprecilanten Eup ($450, 787 - 73,00n)/5 = $75,557

Int, Eup. Date 12/31/2020 12/31/2012 12/31/2012 [2431/2013 12/31/2024 Amortization Schedule Carry Amount of hole $ 450,787 $450,787 X 10%= 450,78.7 $ 455,865.7 $ 495,816X 10 X = 49584.57 $ 545,459.27 $ 545, 458X10%. = 545450227 $599998.497 3599998 Xloy = 59999.1497 $660,000 Interest in coming 450, 78 7 so he take = 45079 2021 $_45978.7 & $ 49,586.57 $49,587 945079 2022