| | Problem 14-8 On December 31, 2017, Skysong Company acquired a computer from Plato Corporation by issuing a $548,000 zero-interest-bearing note, payable in full on December 31, 2021. 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, 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 Explanation | Debit | Credit | | December 31, 2017 | | | | | | | | | | | | | | | SHOW LIST OF ACCOUNTS | | LINK TO TEXT | | | | | | 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 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, 2018 | | | | | | | | | | | (To record the depreciation.) | | | | December 31, 2018 | | | | | | | | | | | (To amortize the discount.) | | | | Schedule of Note Discount Amortization | | Date | | Debit, Interest Expense Credit, Discount on Notes Payable | | Carrying Amount of Note | | | 12/31/17 | | $ | | $ | | | 12/31/18 | | | | | | | 12/31/19 | | | | | | | 12/31/20 | | | | | | | 12/31/21 | | | | | | | SHOW LIST OF ACCOUNTS | | LINK TO TEXT | | | | | | 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 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, 2019 | | | | | | | | | | | (To record the depreciation.) | | | | December 31, 2019 | | | | | | | | | | | (To amortize the discount.) | | | | | |
