On December 31, 2025, Windsor Company acquired a press from Sugar Corporation by issuing a $370,000 zero-interest-bearing note, payable in full on December 31, 2028. Windsor's credit rating permits it to borrow funds from its several lines of credit at 8%. The press is expected to have a 6-year life and a $34,000 salvage value. (a) Your answer is partially 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 O decimal places e.g. 58,971. 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 Debit Credit
On December 31, 2025, Windsor Company acquired a press from Sugar Corporation by issuing a $370,000 zero-interest-bearing note, payable in full on December 31, 2028. Windsor's credit rating permits it to borrow funds from its several lines of credit at 8%. The press is expected to have a 6-year life and a $34,000 salvage value. (a) Your answer is partially 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 O decimal places e.g. 58,971. 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 Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On December 31, 2025, Windsor Company acquired a press from Sugar Corporation by issuing a $370,000 zero-interest-bearing
note, payable in full on December 31, 2028. Windsor's credit rating permits it to borrow funds from its several lines of credit at 8%.
The press is expected to have a 6-year life and a $34,000 salvage value.
(a)
Your answer is partially 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 O decimal places e.g. 58,971. 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
December
31, 2025
Account Titles and Explanation
Equipment
Discount on Notes Payable
Notes Payable
Debit
293706
76294
Credit
100
370000
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