Tamarisk Corporation purchased a computer on December 31, 2024, for $138,600, paying $39,600 down and agreeing to pay thebalance in five equal installments of $19,800 payable each December 31 beginning in 2025. An assumed interest rate of 9% is implicitin the purchase price.(a)Your answer is partially correct.Prepare the journal entry at the date of purchase. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 2 decimalplaces, e.g. 52.75. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required,select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.)Date:. 31, 2024Account Titles and ExplanationEquipmentDiscount on Notes PayableNotes PayableCashDebit116615.0021985.00Credit09900039600

Solution: Equipment value = cash paid + Installment * Cumulative PV of $1@ 9% for 5 Years =…

Tamarisk Corporation purchased a computer on December 31, 2024, for $138,600, paying $39,600 down and agreeing to pay the balance in five equal installments of $19,800 payable each December 31 beginning in 2025. An assumed interest rate of 9% is implicit in the purchase price. (a) Your answer is partially correct.

Tamarisk Corporation purchased a computer on December 31, 2024, for $138,600, paying $39,600 down and agreeing to pay the balance in five equal installments of $19,800 payable each December 31 beginning in 2025. An assumed interest rate of 9% is implicit in the purchase price. (a) Your answer is partially correct.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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