On December 31, 2020, Skysong Company acquired a computer from Plato Corporation by issuing a $ 542,000 zero-interest-bearing note, payable in full on December 31, 2024. Skysong Companys 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 $ 64,000 salvage value.

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

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
	(To record the depreciation.)
December 31, 2021
	(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		$		$
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 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
	(To record the depreciation.)
December 31, 2022
	(To amortize the discount.)

List of Accounts

• Accumulated Depreciation-Equipment
• Accumulated Depreciation-Machinery
• Accumulated Depreciation-Plant and Equipment
• Allowance for Doubtful Accounts
• Bad Debt Expense
• Bond Issue Expense
• Bonds Payable
• Buildings
• Cash
• Common Stock
• Cost of Goods Sold
• Debt Investments
• Depreciation Expense
• Discount on Bonds Payable
• Discount on Notes Payable
• Discount on Notes Receivable
• Equipment
• Equity Investments
• Gain on Disposal of Machinery
• Gain on Disposal of Land
• Gain on Disposal of Plant Assets
• Gain on Redemption of Bonds
• Gain on Restructuring of Debt
• Gain on Sale of Machinery
• Interest Expense
• Interest Payable
• Interest Receivable
• Interest Revenue
• Inventory
• Land
• Loss on Disposal of Equipment
• Loss on Disposal of Land
• Loss on Redemption of Bonds
• Machinery
• Mortgage Payable
• No Entry
• Notes Payable
• Notes Receivable
• Paid-in Capital in Excess of Par - Common Stock
• Paid-in Capital in Excess of Par - Preferred Stock
• Premium on Bonds Payable
• Retained Earnings
• Salaries and Wages Expense
• Sales
• Sales Revenue
• Unamortized Bond Issue Costs
• Unearned Revenue
• Unearned Sales Revenue
• Unrealized Holding Gain or Loss - Equity
• Unrealized Holding Gain or Loss - Income