On June 1, 2010, Jorgensen Corporation purchased a piece of equipment with a list price of $ 200,000 and signed a five- year noninterest- bearing note. The market rate at the time the note was signed was 8 percent. Given the following amortization schedule for the note and the fact that Jorgensen has a December 31 fiscal year- end, make the entries necessary for 2010, 2011, and 2012.

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Discount Left $93865.62 77,865.62 60585.62 41,923.22 21,767.83 0.00 Period Payment Interest Carrying Value $0.00 0.00 0.00 0.00 0.00 $16,000.00 17,280.00 18,662.40 20,155.39 21,767.83 $200,000.00 216,000.00 233,280.00 251,942.40 272,097.79 293,865.62