Question

Cardinals Corporation purchased a computer on December 31, 2013,for $129,570, paying $37,020 down and agreeing to pay the balancein five equal installments of $18,510 payable each December 31beginning in 2014. An assumed interest rate of 9% is implicit inthe purchase price.

Prepare Journal Entry at date of purchase. Please help me findthe values for Equipment and Discounts on Notes Payable.

Equipment ______

Discounts on Notes Payable _____

Notes Payable 92550

Cash 37020