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Problem 14-8 On December 31, 2017, Buffalo Company acquired a computer from Plato Corporation by issuing a $548,000 zero-interest-bearing note, payable in full on December

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Problem 14-8 On December 31, 2017, Buffalo Company acquired a computer from Plato Corporation by issuing a $548,000 zero-interest-bearing note, payable in full on December 31, 2021. Buffalo 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 $64,000 salvage value Prepare the journal entry for the purchase on December 31, 2017. Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer 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 Explanatiose Debit Credit December 31, 2017 Prepare any necessary adjusting entries relative to depreciation (use straight-line) and amortization (use effective-interest method) on December 31, 2018. (Round answers to 0 decimal places, e.g 38,548. If no entry is required, select "No Entry" for the account titles and enter O 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, 2018 To record the depreciation December 31, 2018 To amortize the discount Schedule of Note Discount Amortization Debit, Interest Expense Credit, Carrying Amount of Note Date Discount on Notes Payable 12/31/17 12/31/18 12/31/19 12/31/20 12/31/21 SHOW LIST OF ACCOUNTS Prepare any necessary adjusting entries relative to depreciation and amortization on December 31, 2019. (Round answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter O 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, 2019 To record the depreciation.) December 31, 2019 To amortize the discount)

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