Need help Coronado Corporation purchased a computer on December 31,2016, for $149,100, paying $42,600 down and agreeing to paythe balance in five equal installments of $21,300 payable eachDecember 31 beginning in 2017. An assumed interest rate of8% is implicit in the purchase price.Required:a. Prepare the journal entry at the date of purchase.b. Prepare the journal entry on December 31, 2017, to recordthe payment and interest.

Part a: Journal Entry at the Date of Purchase (December 31, 2016)Transaction Details:Purchase price…

Answered: Coronado Corporation purchased a…

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter7: Receivables And Investments

Section: Chapter Questions

Problem 7.10E

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Please show work with explanations
At January 1, 2016, Brant Cargo acquired equipment by issuing a five-year, $150,000 (payable at maturity), 4% note. The market rate of interest for notes of similar risk is 10%. Required: 1. Prepare the journal entry for Brant Cargo to record the purchase of the equipment. 2. Prepare the journal entry for Brant Cargo to record the interest at December 31, 2016. 3. Prepare the journal entry for Brant Cargo to record the interest at December 31, 2017.

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