Homework Answers
| Date | General Journal | Debit | Credit |
| January 01, 2021 | Equipment | $204,440 | |
| Discount on notes payable | $45,560 | ||
| ... Notes payable | $250,000 | ||
| (To record the purchase of equipment) |
Present value
i = 12%
n = 4 years
Interest = $250,000 * 6% = $15,000
Present value = $15,000 * PVAF (12%,4) + $250,000 * PVF(12%,4)
= $15,000 * 3.03735 + $250,000 * 0.63552
= $204,440
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