Chapter 1 Problem 15-7
Down payment 100,000
Present value of note (200,000 x 3.17) 634,000
Total cost 734,000
2008
Jan. 1 Machinery 734,000
Discount on note payable 166,000
Cash 100,000
Note payable 800,000
Dec. 31 Note payable 200,000
Cash 200,000
31 Interest expense 63,400
Discount on note payable 63,400
Date Payment 10% interest Principal Present value
01/01/2008 634,000
12/31/2008 200,000 63,400 136,600 497,400
12/31/2009 200,000 49,740 150,260 347,140
12/31/2010 200,000 34,714 165,286 181,854
12/31/2011 200,000 18,146 181,854 -
2009
Dec. 31 Note payable 200,000
Cash 200,000
31 Interest expense 49,740
Discount on note payable 49,740
No comments:
Post a Comment