Cardinals Corporation purchased a computer on December 31, 2013, for $309,015, p
ID: 2451740 • Letter: C
Question
Cardinals Corporation purchased a computer on December 31, 2013, for $309,015, paying $88,290 down and agreeing to pay the balance in five equal installments of $44,145 payable each December 31 beginning in 2014. An assumed interest rate of 9% is implicit in the purchase price.
Prepare the journal entry at the date of purchase. (Round answers to 0 decimal places, e.g. 5,275. 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 0 for the amounts. Round factor values to 5 decimal places, e.g. 1.25124.)
Date
Account Titles and Explanation
Debit
Credit
Date
Account Titles and Explanation
Debit
Credit
Date
Account Titles and Explanation
Debit
Credit
Date
Account Titles and Explanation
Debit
Credit
December 31, 2013Equipment
259999
Discount on Notes Payable
49016
Cash
88290
Notes Payable
220725
Explanation / Answer
Cardinals Corporation purchased a computer on December 31, 2013, for $309,015, p