in exchange for a noninterest bearing note requiring eight Problem 23-15 (AICPA Adapted) On December 31, 2020, Bart Company purchased a machine payments of P200,000. The first payment was made on December 31, 2020 and the others are due annually on December 31. At date of issuance, the prevailing rate of interest for thi type of note was 11%. PV of an ordinary annuity of 1 at 11% for 8 periods 5.146 PV of an annuity of 1 in advance at 11% for 8 periods 5.712 1. What amount should be recorded as initial cost of the machine? a 1,600,000 b. 1,029,200 c. 1,400,000 d. 1,142,400 2. What is the discount on note payable on December 31, 2020? a 657,600 b. 457,600 c. 570,800 d. 3. What is the interest expense for 2021? a 125,664 b. 103,664 c. 113,212 d. 176,000

in exchange for a noninterest bearing note requiring eight Problem 23-15 (AICPA Adapted) On December 31, 2020, Bart Company purchased a machine payments of P200,000. The first payment was made on December 31, 2020 and the others are due annually on December 31. At date of issuance, the prevailing rate of interest for thi type of note was 11%. PV of an ordinary annuity of 1 at 11% for 8 periods 5.146 PV of an annuity of 1 in advance at 11% for 8 periods 5.712 1. What amount should be recorded as initial cost of the machine? a 1,600,000 b. 1,029,200 c. 1,400,000 d. 1,142,400 2. What is the discount on note payable on December 31, 2020? a 657,600 b. 457,600 c. 570,800 d. 3. What is the interest expense for 2021? a 125,664 b. 103,664 c. 113,212 d. 176,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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