Cardinals Corporation purchased a computer on December $31,2019,$ for $$105,000,$ paying$$30,000$ down and agreeing to pay the balance in five equal installments of $$15,000$ payable each December $31$ beginning in $2020.$ An assumed interest rate of $10\%$ is implicit in the purchase price.

Instructions

$($Round to two decimal places.$)$

b$.$ Prepare the journal entry$($ies$)$ at December $31,2020,$ to record the payment and interest $($effective$-$ interest method employed$).$Prepare the journal entry at December $31,2025,$ to record the payment and interest $($effective$-$interest method employed$).$

$($Round answers to $2$ decimal places, e$.$g$.52\mathrm{.}75.$ Credit account titles are automatically indented when amount is entered. Do not indent

manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. List all debit entries before credit

entries.$)$

Debit

Cash

Credit