P$14-8($Entries for Zero$-$Interest$-$Bearing Note$)$ On December $31,2012,$ Faital Co$.$ acquired a computer from Plato Corp. by issuing a $$600,000$ zero$-$interest$-$bearing note, payable in full on December $31,2016.$ Faital Co$.$ credit rating permits it to borrow funds from its several lines of credit at $105.$ The computer is expected to have a $5-$years life and a $$70,000$ salvage value.

Instructions

$($a$)$ Prepare the journal entry for the purchased$-$on December $31,2012.$

$($b$)$ Prepare any necessary adjusting entries relative to depreciation $($use straight$-$line$)$ and amortization $($use effective$-$interest method$)$ on December $31,2013.$

$($c$)$ Prepare any necessary adjusting entries relative to depreciation and amortization on December $31,2014.$