Exercise 10-15 Deferred payment purchase

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 starting in 2020. An assumed interest rate of 10% is implicit in the purchase price.

Instructions: Prepare journal entries relating to the equipment and notes payable for all 5 years.

Date	Account	Debit	Credit