Current Attempt in Progress On December 31, 2025, Teal Company acquired a computer from Plato Corporation by issuing a $606,000.00 zero-interest-bearing note, payable in full on December 31, 2029. Teal Company's credit rating permits it to borrow funds from its several lines of credit at 10%. The computer is expected to have a 5-year life and a $65,000 salvage value. Click here to view factor tables. (a) Your answer is correct. Prepare the journal entry for the purchase on December 31, 2025. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to 2 decimal places, e.g. 58,971.23. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date Account Titles and Explanation Equipment December 31, 2025 Discount on Notes Payable Notes Payable eTextbook and Media Debit 413906.15 192093.85 Credit 606000 (b) Your answer is partially correct. Prepare any necessary adjusting entries relative to depreciation (use straight-line) and amortization (use effective-interest method) on December 31, 2026. (Round answers to 2 decimal places, e.g. 38,548.23. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date Account Titles and Explanation December 31,2026 December 31,2026 Depreciation Expense Accumulated Depreciation-Equipment (To record the depreciation.) Interest Expense Discount on Notes Payable (To amortize the discount.) Debit 69781.23 Credit 69781.23
Current Attempt in Progress On December 31, 2025, Teal Company acquired a computer from Plato Corporation by issuing a $606,000.00 zero-interest-bearing note, payable in full on December 31, 2029. Teal Company's credit rating permits it to borrow funds from its several lines of credit at 10%. The computer is expected to have a 5-year life and a $65,000 salvage value. Click here to view factor tables. (a) Your answer is correct. Prepare the journal entry for the purchase on December 31, 2025. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to 2 decimal places, e.g. 58,971.23. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date Account Titles and Explanation Equipment December 31, 2025 Discount on Notes Payable Notes Payable eTextbook and Media Debit 413906.15 192093.85 Credit 606000 (b) Your answer is partially correct. Prepare any necessary adjusting entries relative to depreciation (use straight-line) and amortization (use effective-interest method) on December 31, 2026. (Round answers to 2 decimal places, e.g. 38,548.23. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date Account Titles and Explanation December 31,2026 December 31,2026 Depreciation Expense Accumulated Depreciation-Equipment (To record the depreciation.) Interest Expense Discount on Notes Payable (To amortize the discount.) Debit 69781.23 Credit 69781.23
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 8MC: Grummet Company is acquiring a new wood lathe with a cash purchase price of $80,000. The Wood Master...
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Transcribed Image Text:Current Attempt in Progress
On December 31, 2025, Teal Company acquired a computer from Plato Corporation by issuing a $606,000.00 zero-interest-bearing
note, payable in full on December 31, 2029. Teal Company's credit rating permits it to borrow funds from its several lines of credit
at 10%. The computer is expected to have a 5-year life and a $65,000 salvage value.
Click here to view factor tables.
(a)
Your answer is correct.
Prepare the journal entry for the purchase on December 31, 2025. (Round present value factor calculations to 5 decimal places, e.g.
1.25124 and the final answers to 2 decimal places, e.g. 58,971.23. If no entry is required, select "No Entry" for the account titles and enter
O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit
entries before credit entries.)
Date
Account Titles and Explanation
Equipment
December
31, 2025
Discount on Notes Payable
Notes Payable
eTextbook and Media
Debit
413906.15
192093.85
Credit
606000
Transcribed Image Text:(b)
Your answer is partially correct.
Prepare any necessary adjusting entries relative to depreciation (use straight-line) and amortization (use effective-interest
method) on December 31, 2026. (Round answers to 2 decimal places, e.g. 38,548.23. If no entry is required, select "No Entry" for the
account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent
manually. List all debit entries before credit entries.)
Date
Account Titles and Explanation
December
31,2026
December
31,2026
Depreciation Expense
Accumulated Depreciation-Equipment
(To record the depreciation.)
Interest Expense
Discount on Notes Payable
(To amortize the discount.)
Debit
69781.23
Credit
69781.23
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