PRONTER VERSION BACK NEXT Problem 14-8 On December 31, 2017, Carla Company acquired a computer from Plato Corporation by issuing a $569,000 zero-interest-bearing note, payable in full on December 31, 2021. Carla Company's credit rating permits it to borrow funds from its several lines of crede at 10%. The computer is expected to have a 5-year lde and a $65,000 salvage value. Prepare the journal entry for the purchase on December 31, 2017. (Rond present value factor cakulations to S decimal places eg. 1.25124 and the final answer to 0 dlecimal places eg. 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 Equipment 413075 Discount on Notes Payable 236925 569000 Notes Payable 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, ea. 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.) Debit Credit Account Titles and Explanation Date December 31, 2018 Depreciation Expense Accumulated Deprecation-Equipment (To record the deprecation) December 31, 2018 Interest Expense Verson 4.24.17.8 December 31, 2018 Depreciation Expense Accumulated Depreciation-Equipment (To record the depreciation.) December 31, 2018 Interest Expense Discount on Notes Payable (To amortize the discount.) Schedule of Note Discount Amortization Debit, Interest Expense Credit, Carrying Amount Discount on Notes Payable of Note Date 12/31/17 12/31/18 12/31/19 12/31/20 12/31/21 Prepare any necessary adjusting entries relative to depreciation and amortization on December 31, 2019. for the account titles and enter 0 for the amounts. Credit account titles are automatically indent Credit Debit Account Titles and Explanation Date CALCULATOR FULL SCREEN PRINTER VERSBON 1BACK NEX 12/31/21 Prepare any necessary adjusting entries relative to depreciation and amortization on December 31, 2019. (Round answers to 0 decimal places, eg. 38,548. If no entry is required, select "No Entry for the account titles aand enter 0 for the amounts. Credit account titles are automatically intented when amount is eatered. Do not indent manually.) Date Account Titles and Explanation Debet Credit December 31, 2019 Depreciation Expense Accumulated Depredation tquipment (To record the depreciation) December 31, 2019 teterest Espense Discount on Notes Payable (To amortize the dscount.) Click if you would like to Show Work for this question: Open Show Wark
