50.1K

Verified Solution

Link Copied!

Problem 14-8 On December 31, 2017, Headland Company acquired a computer from Plato Corporation by issuing a $633,000 zero-interest-bearing note, payable in full on December 31, 2021. Headland Company's credit rating permits it to borrow funds from its several lines of credit at 12%. The computer is expected to have a 5-year life and a $66,000 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 o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation 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 O 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.) Debit Credit Date Account Titles and Explanation 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 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. (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.) Debit Credit Date Account Titles and Explanation December 31, 2019 (To record the depreciation.) December 31, 2019 (To amortize the discount.) SHOW LIST OF ACCOUNTS LINK TO TEXT Question Attempts: Unlimited

Answer & Explanation Solved by verified expert

See Answer