On December $31,2025,$ Windsor Company acquired a computer from Plato Corporation by issuing a $$570,000\mathrm{.}00$ zero$-$interest$-$bearing note, payable in full on December $31,2029.$ Windsor Company$$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 $$67,000$ salvage value. Prepare the journal entry for the purchase on December $31,2025.$ Prepare any necessary adjusting entries relative to depreciation $($use straight$-$line$)$ and amortization $($use effective$-$interest method$)$ on December $31,2026.$ On December $31,2025,$ Windsor Company acquired a computer from Plato Corporation by issuing a $\backslash (\backslash$$ $570,000\mathrm{.}00\backslash )$ zero$-$interestbearing note, payable in full on December $31,2029.$ Windsor Company's credit rating permits it to borrow funds from its several lines of credit at $\backslash (10\backslash \%\backslash ).$ The computer is expected to have a $5-$year life and a $\backslash (\backslash$$ $67,000\backslash )$ salvage value.

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$($a$)$

Your answer is correct.

Prepare the journal entry for the purchase on December $31,2025.($Round present value factor calculations to $5$ decimal places, e$.$g$.1\mathrm{.}25124$ and the final answers to $2$ decimal places, e$.$g$.58,971\mathrm{.}23.$ 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 the amount is entered. Do not indent manually. List all debit entries before credit entries.$)$December $31,2025$

Equipment

$389,316\mathrm{.}70($b$)$

Your answer is partially correct.

Prepare any necessary adjusting entries relative to depreciation $($use straight$-$line$)$ and amortization $($use effective$-$interest method$)$ on December $31,2026.($Round answers to $2$ decimal places, e$.$g$.38,548\mathrm{.}23.$ 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 the amount is entered. Do not indent manually. List all debit entries before credit entries.$)$

Date

Account Titles and Explanation

December $31,2026$

December $31,2026$

Discount on Notes Payable

$($To amortize the discount.$)$

Depreciation Expense

Accumulated Depreciation$-$Equipment

$($To record the depreciation.$)$

Schedule of Note Discount Amortization

Debit Interest Expense $/$ Credit Discount Carrying Value

Date on Notes Payable of Note

$\backslash$$

$12/31/29$

$12/31/26$

$12/31/27$

$12/31/28$

$\backslash$$

$12/31/25$

$2/31/26$

$1$