On December 31, 2020, Pronghorn Company acquired a computer from Plato Corporation by issuing a $650,000 zero-interest-bearing
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On December 31, 2020, Pronghorn Company acquired a computer from Plato Corporation by issuing a $650,000 zero-interest-bearing note, payable in full on December 31, 2024.
Pronghorn 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$76,000 salvage value.
Prepare any necessary adjusting entries relative to depreciation(use straight-line) and amortization (use effective-interest method) on December 31, 2021.
Related Book For
Accounting Principles
ISBN: 978-1119411482
13th edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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