On December 31, 2020, Blue Company acquired a computer from Plato Corporation by issuing a $641,000 zero-interest-bearing note, payable in full on December 31, 2024. Blue Companys credit rating permits it to borrow funds from its several lines of credit at 12%. The computer is expected to have a 5-year life and a $76,000 salvage value. Correct answer iconYour answer is correct. Prepare the journal entry for the purchase on December 31, 2020. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to 0 decimal places e.g. 58,971. If no entry is required, select "No Entry" for the account titles and enter 0 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 Equipment 407367 Discount on Notes Payable 233633 Notes Payable 641000 Partially correct answer iconYour answer is partially correct. Prepare any necessary adjusting entries relative to depreciation (use straight-line) and amortization (use effective-interest method) on December 31, 2021. (Round answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 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, 2021 Depreciation Expense 66273 Accumulated Depreciation-Equipment 66273 (To record the depreciation.) December 31, 2021 Interest Expense 48884 Discount on Notes Payable 48884 (To amortize the discount.) Schedule of Note Discount Amortization Date Debit, Interest Expense Credit, Discount on Notes Payable Carrying Amount of Note 12/31/20 $ $ 407367 12/31/21 48884 435403 12/31/22 12/31/23 12/31/24 eTextbook and MediaAssistance Used List of Accounts Partially correct answer iconYour answer is partially correct. 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 0 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, 2022 Depreciation Expense 66273 Accumulated Depreciation-Equipment 66273 (To record the depreciation.) December 31, 2022 Interest Expense Discount on Notes Payable (To amortize the discount.)