DataCorp purchased an asset that cost $85,000 on January 1, 2014. Arrangements were made with the supplier to pay $15,000 cash on January 1, 2014, and the balance was to be paid over a threeyear period, with equal annual payments of $29,144 to be made at the end of

2014, 2015, and 2016. Each payment will include principal plus interest on the unpaid balance at

12% per year.

B. Prepare the journal entry for the payment on December 31, 2015.

A. Complete the following table: Interest Reduction in Unpaid Date Payment Expense Principal Principal 01/01/14 12/31/14 2/31/15 2/3 1/16 Totals *Round to reduce principal to zero