On June 1, 2019, 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 2019, 2020, and 2021.

Transcribed Image Text:

Period Payment Interest 6/1/19 6/1/20 6/1/21 6/1/22 6/1/23 6/1/24 Discount Face Value $93,865.62 $293,865.62 $0.00 $16,000.00 77,865.62 293,865.62 0.00 17,280.00 60,585.62 293,865.62 18,662.40 41,923.22 293,865.62 0.00 0.00 20,155.39 21,767.83 293,865.62 0.00 21,767.83 0.00 293,865.62 Carrying Value $200,000.00 216,000.00 233,280.00 251,942.40 272,097.79 293,865.62