Question: please show all steps, thank you. 7. (4 points) On December 31, 2017, Ivanhoe Company acquired a computer from Plato Corporation by issuing a $600,000

please show all steps, thank you.

7. (4 points) On December 31, 2017, Ivanhoe Company acquired a computer from Plato Corporation by issuing a $600,000 zero-interest-bearing note, payable in full on December 31, 2021. Ivanhoe Company's credit rating permits it to borrow funds from its several lines of credit at 8%. The computer is expected to have a 5-year life and a $50,000 salvage value. a. Prepare the journal entry for the purchase on December 31, 2017. DR CR Accounts Date 12/31/17 b. Prepare any necessary adjusting entries relative to depreciation (use straight-line) and amortization (use effective-interest method) on December 31, 2018. Accounts DR CR Depr. Interest

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