Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
On December 31, 2020. Blossom Company acquired a computer from Plato Corporation by issuing a $548,000 zero-interest bearing note, payable in full on December 31,
On December 31, 2020. Blossom Company acquired a computer from Plato Corporation by issuing a $548,000 zero-interest bearing note, payable in full on December 31, 2024. Blossom Company's credit rating permits it to borrow funds from its several lines of credit at 10%. The computer is expected to have a 5-year life and a $72.000 salvage value. Prepare the journal entry for the purchase on December 31, 2020. (Round present value factor calculations to 5 decimal places, es. 1.25124 and the final answers to decimal places eg. 58,971. I no entry is required, select "No Entry for the account titles and entero for the amounts Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit December 31.2020 Prepare any necessary adjusting entries relative to depreciation (use straight-line) and amortization (use effective interest method) on December 31, 2021. (Round answers to decimal places, eg. 38.548. If no filtry is required, select "No Entry for the account titles and enter for the amounts. Credit occount titles are automatically indented when amount is entered. Do not indent manually) Account Titles and Explanation Debit Credit Date December 31, 2021 (To record the depreciation.) December 31, 2021 (To amortize the discount.) Date Schedule of Note Discount Amortization Debit, Interest Expense Credit, Carrying Amount Discount on Notes Payable of Note $ $ 12/31/20 12/31/21 12/31/22 12/31/23 12/31/24 Prepare any necessary adjusting entries relative to depreciation and amortization on December 31, 2022. (Round answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not Indent manual Account Titles and Explanation Debit Credit Date December 31.2022 (To record the depreciation December 31, 2022 (To amortize the discount)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started