WILL RATE FAST:

P14.8B (LO 3) (Entries for Zero-Interest-Bearing Note) On December 31, 2020, Payson Company acquired a press from Sugar Corporation by issuing a $400,000 zero-interest-bearing note, payable in full on December 31, 2023. Payson's credit rating permits it to borrow funds from its several lines of credit at 8%. The press is expected to have a 6-year life and a $40,000 salvage value. Round amounts to the nearest dollar. Instructions (a) Prepare the journal entry for the purchase on December 31, 2020. (b) Prepare any necessary adjusting entries relative to depreciation (use straight-line) and amortization (use effective- interest method) on December 31, 2021. (c) Prepare any necessary adjusting entries relative to depreciation and amortization on December 31, 2022