On December 31 2010 Faital Company Acquired Computer From

(Entries for Zero-Interest-Bearing Note) On December 31, 2010, Faital Company acquired a computer from Plato Corporation by issuing a $600,000 zero-interest-bearing note, payable in full on December 31, 2014. Faital 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 $70,000 salvage value.

(a) Prepare the journal entry for the purchase on December 31, 2010.

(b) Prepare any necessary adjusting entries relative to depreciation (use straight-line) and amortization (use effective-interest method) on December 31, 2011.

(c) Prepare any necessary adjusting entries relative to depreciation and amortization on December 31,

2012.

Place this order or similar order and get an amazing discount. USE Discount code “GET20” for 20% discount