On December 31, 2014, Faital Company acquired a computer from Plato Corporation

On December 31, 2014, Faital Company acquired a computer from Plato Corporation by issuing a $642,500 zero-interest-bearing note, payable in full on December 31, 2018. 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 $72,000 salvage value.(a) Prepare the journal entry for the purchase on December 31, 2014. (Round answers to 0 decimal places, e.g. 38,548. If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)DateAccount Titles and ExplanationDebitCreditDecember 31, 2014(b) Prepare any necessary adjusting entries relative to depreciation (use straight-line) and amortization (use effective-interest method) on December 31, 2015. (Round answers to 0 decimal places, e.g. 38,548. If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)DateAccount Titles and ExplanationDebitCreditDecember 31, 2015(To record the depreciation.)December 31, 2015(To amortize the discount.)Schedule of Note Discount AmortizationDateDebit, Interest Expense Credit,Discount on Notes PayableCarrying Amountof Note12/31/14$$12/31/1512/31/1612/31/1712/31/18(c) Prepare any necessary adjusting entries relative to depreciation and amortization on December 31, 2016.(Round answers to 0 decimal places, e.g. 38,548. If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)DateAccount Titles and ExplanationDebitCreditDecember 31, 2016(To record the depreciation.)December 31, 2016(To amortize the discount.)