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On December 31, 2020, Oriole Company acquired a computer from Plato Corporation by issuing a $615,000 zero-interest-bearing note, payable in full on December 31, 2024.
On December 31, 2020, Oriole Company acquired a computer from Plato Corporation by issuing a $615,000 zero-interest-bearing note, payable in full on December 31, 2024. Oriole 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 $63,000 salvage value. 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.) Schedule of Note Discount Amortization Date12/31/2012/31/2112/31/22Debit,InterestExpenseCredit,DiscountonNotesPayableCarryingAmountofNote Save for Later Attempts: 0 of 3 used Submit
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