Question: 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

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.

Step by Step Solution

★★★★★

3.53 Rating (153 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

50000 089000 44500 The journal ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

994-B-C-A-B (1447).docx

120 KBs Word File

Students Have Also Explored These Related Cost Accounting Questions!

Consider an aperiodic signal x(n) with Fourier transform X(?). Show that the Fourier series coefficients C?v of the periodic signal are given by >* (n - IN) V(n) = i=-a -(#) 2 A = 0. 1... N 1

Mulkeen Service Company, Inc. was incorporated by Conor Mulkeen and five other managers. The following activities occurred during the year: a. Received $ 60,000 cash from the managers; each was...

Precision Builders Construction Company was incorporated by Chris Stoschek. The following activities occurred during the year: a. Received from three investors $60,000 cash and land valued at...

Harrigan Service Company, Inc., was incorporated by Ian Harrigan and five other managers. The following activities occurred during the year: a. Received $60,000 cash from the managers; each was...

M9-11 LO9-7 Computing the Present Value of a Complex Contract Global Stores is downsizing and must let some employees go. Employees volunteering to leave are being offered a severance package of...

MoonShine Company signed a note for $85,000 to purchase a new piece of equipment. MoonShine will pay the $85,000 back at the end of two years along with any accrued interest. The annual interest rate...

Moonshine Company signed a note for $55.000 to purchase a new piece of equipment. MoonShine will pay the $55.000 back at the end of two years along with any accrued interest. The annual interest rate...

M9-12 (Static) Computing Present Values and Recording Long-Term Liabilities LO9-8 MoonShine Company signed a note for $50.000 to purchase a new piece of equipment. MoonShine will pay back the $50,000...

MoonShine Company signed a note for $70,000 to purchase a new piece of equipment. MoonShine will pay back the $70,000 at the end of two years along with any accrued interest. The annual interest rate...

MoonShine Company signed a note for $95,000 to purchase a new piece of equipment. MoonShine will pay back the $95,000 at the end of two years along with any accrued interest. The annual interest rate...

Santa Fe Corporation has computed the following unit costs for the year just: Direct material used $25, Direct labor 19, Variable manufacturing overhead 35, Fixed manufacturing overhead 40, Variable...

Based on these units, select any of the following expressions that could be valid expressions? P va t= d= at a vd t3 a= v = at

Use the Squeeze Theorem to evaluate the limit . ( Use symbolic notation and fractions where needed. ) lim ( x , y ) ( 5 , 5 ) ( x 2 - 2 5 ) c o s ( 1 ( x - 5 ) 2 ( y - 5 ) 2 ) =

Correct these sentences 1 Do you can help me? 2 What time have you to start work? 3 We no allowed to wear jeans at school. 4 We no can do what we want. 5 My mother have to work very hard six days a...

4.Let AD be a median of AABC. If AE and AF are medians of AABD and AADC respectively and AD = m,, AE = m,, AF = m,, BC = a, then 8 A) m + m - 2m B) m + m - 2m, C) mi + m - 2m D) m + m + m

Answer all questions from 1 to 5 with a brief explanation ...0.1KB/s ll Vo LTE 53 4:45 PM CamScanner 07-27... C.U.Q The following is a reversible reaction 1) KCIO, heated in a sealed tube 2) Na ,CO,...

Answer all questions from 6 to 12 with a brief explanation for the answer ...30.4KB/s ll Vo LTE 53 4:45 PM CamScanner 07-27... ZAC(s) JU2(8) 4) NH HS) NH,(g) + H,S Scanned with CamScanner Which of...

Design and implement a Class named Postal that represents information for a postal customer Voting a first name, last name and integer representing a zip code Provide a constructor that accepts the...

Explain: Free-trade zones such as the EU and NAFTA lead a double life: They can promote free trade among members, but they pose serious trade obstacles for nonmembers. Do you think the net effects of...

Avon Products, Inc., is a leading manufacturer and marketer of beauty products and related merchandise. The company sells its products in 79 countries through a combination of direct selling and use...

Sonos, Inc., designs, develops, manufactures, and sells multi-room audio products. The Sonos sound system provides customers with an immersive listening experience created by the design of its...

Explain what a material amount is.

On June 1, 2014, Mayberry Imports purchased bonds on the open market, paying $92,994. The bonds had a face value of $100,000, a stated annual interest rate of 4 percent, and a remaining time to...

You have found the following historical information for the Daniela Company. Earnings are expected to grow at 9 present for the next year. Using the company's historical average PE as a benchmark,...

PART 2 - FINANCE a) You would like to retire in 27 years. The expected rate of inflation is 2.36% per year. You currently have a standard of living that requires $6149 of monthly expenses. Assuming...