Soldan Corporation purchased a computer on December 31, 2011, paying $30,000 down and a further $75,000 payment

Question:

Soldan purchased a computer on December 31, 2011, paying $30,000 down and a further $75,000 payment due on December 31, 2014. An interest rate of 10% is implicit in the purchase price. Soldan uses the effective interest method and has a December 31 year end.
Instructions
(a) Prepare the journal entry(ies) at the purchase date. (Round to two decimal places.)
(b) Prepare any journal entry(ies) required at December 31, 2012, 2013, and 2014. Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...