On december 31 2010 faital company acquired a computer from

Assignment Help Accounting Basics

Reference no: EM13606420

On December 31, 2010, Faital Company acquired a computer from Plato Corporation by issuing a $600,000 zero-interest-bearing note, payable in full on December 31, 2014. Faital 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 $70,000 salvage value.
(a) Prepare the journal entry for the purchase on December 31, 2010.
(b) Prepare any necessary adjusting entries relative to depreciation (use straight-line) and amortization (use effective-interest method) on December 31, 2011.
(c) Prepare any necessary adjusting entries relative to depreciation and amortization on December 31, 2012.

Reference no: EM13606420

Questions Cloud

Deduction of taxes joyce is a single cash-method taxpayer : deduction of taxes. joyce is a single cash-method taxpayer. on april 11 2009 joyce paid 120 with her 2008 state income

Question 50g of gasoline are mixed with 40g of water what : question 50g of gasoline are mixed with 40g of water. what is the average density kgm3 of the mixture? 55g of gasoline

On march 2 2013 20-year 6 percent general obligation serial : on march 2 2013 20-year 6 percent general obligation serial bonds were issued at the face amount of 3000000. interest

Calculate the minimum possible magnitude u of the muzzle : calculate the minimum possible magnitude u of the muzzle velocity which a projectile must have when fired from point a

On december 31 2010 faital company acquired a computer from : on december 31 2010 faital company acquired a computer from plato corporation by issuing a 600000 zero-interest-bearing

In a recent survey ten percent of the homes in montana were : in a recent survey ten percent of the homes in montana were found to own a miley cyrus action figure. in a sample of

Which of the following equations is newtons law in the : use your imagination to consider two tennis balls on a flat table. the two balls touch each other and are at rest.

Determine the deformation when the block momentarily stops : two equal-length springs have a stiffness ka300nm and kb200nm are nested together in order to form a shock absorber. if

Calculate hawaii-blues total obligation to tourists at the : accounting for prepaid expenses and unearned revenues. hawaii-blue began business on january 1 of the current year and

User Account

All Pages