7 On December 31, 2020, Faital Company acquired a computer from Plato Corporation by issuing a 8 $600,000 zero-interest-bearing note, payable in full on December 31, 2024. 9 Faital Company's credit rating permits it to borrow funds from its several lines of credit at 10%. 10 The computer is expected to have a 5-year life and a $70,000 salvage value. 11 12 Instructions 13 14 a. Prepare the journal entry for the purchase on December 31, 2020. 15 16. 17 18 19 201 Computer Discount on Notes Payable Notes Payable 21 b. Prepare any necessary adjusting entries relative to depreciation (use straight-line) and amortization (use effective-interest method) on December 31, 2021. 221 23 24 25 20 27 28 29 30 31 Schedule of Note Discount Amortization 32 33 34 35 36 37 30 Date Interest Expense Carrying Amount of Note 39 c. Prepare any necessary adjusting entries relative to depreciation and amortization on December 31, 2022. 40 41 42 43 44 45 46 49