Part $2$

Dawson Corporation purchased a computer on December $31,2024,$ for $$75,000,$ paying $$25,000$

down and agreeing to pay the balance in five equal installments of $$10,000$ payable each Decemb

$31$ beginning in $2025.$ An assumed interest rate of $8\%$ is implicit in the purchase price.

Instructions

a$.$ Prepare the journal entry $($entries$)$ at the date of purchase. $($Round to two decimal places.$)$

b$.$ Prepare the journal entry $($entries$)$ at December $31,2025,$ to record the payment and interest

$($effective$-$interest method employed$).$

c$.$ Prepare the journal entry $($entries$)$ at December $31,2026,$ to record the payment and interest

$($effective$-$interest method employed$).$

December $31,2024$