Exercise 10-15

Concord Corporation purchased a computer on December 31, 2016, for $107,100, paying $30,600down and agreeing to pay the balance in five equal installments of $15,300payable each December 31 beginning in 2017. An assumed interest rate of9% is implicit in the purchase price.

Prepare the journal entry at the date of purchase.

12/31/2016

12/31/2017

12/31/2018