MoonShine Company signed a note for $50,000 to purchase a new piece of equipment. MoonShine will pay

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MoonShine Company signed a note for $50,000 to purchase a new piece of equipment. MoonShine will pay the $50,000 back at the end of two years along with any accrued interest. The annual interest rate on the loan is 6%. Compute the present value of this long-term liability, and provide the journal entry MoonShine will record on the day it purchases the piece of equipment and signs the note.

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Financial Accounting

ISBN: 978-1259222139

9th edition

Authors: Robert Libby, Patricia Libby, Frank Hodge

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