Question: please solve the entire problem Problem 14-8 On December 31,2017 , Sheffield Company acquired a computer from Plato Corporation by issuing a $591,000 zero-interest-bearing note,
Problem 14-8 On December 31,2017 , Sheffield Company acquired a computer from Plato Corporation by issuing a $591,000 zero-interest-bearing note, payable in full on December 31,2021 . Sheffield 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 $63,000 salvage value. (a) Prepare the journal entry for the purchase on December 31,2017. (b) Prepare any necessary adjusting entries relative to depreciation (use straight-line) and amortization (use effective-interest method) on December 31,2018. (c) Prepare any necessary adjusting entries relative to depreciation and amortization on December 31,2019
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