Splish Corporation purchased a computer on December 31 2016

Splish Corporation purchased a computer on December 31, 2016, for $136,500, paying $39,000 down and agreeing to pay the balance in five equal installments of $19,500 payable each December 31 beginning in 2017. An assumed interest rate of 9% is implicit in the purchase price.

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Splish Corporation purchased a computer on December 31, 2016, for $136,500, paying $39,000 down and agreeing to pay the balance in five equal installments of $19,500 payable each December 31 beginning in 2017. An assumed interest rate of 9% is implicit in the purchase price.

Solution

Journal entry ;