Homework Answers
a)
| Date | Account Titles | Debit | Credit |
| Dec. 31, 2020 | Equipment | $94,137 | |
| Discount on Notes payable | $5,863 | ||
| Notes payable | $71,000 | ||
| Cash | $29,000 |
Working as follows:
Equipment = Down payment +$71,000 
PVF(9%, 1)
= $29,000 + $71,000
0.917431
= $94,137
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