Question: A machine is purchased for $7,000 down and 5 annual payments of $12,000. Using an 8% interest rate, the present value factors are as

A machine is purchased for $7,000 down and 5 annual payments of $12,000. Using an 8% interest rate, the

A machine is purchased for $7,000 down and 5 annual payments of $12,000. Using an 8% interest rate, the present value factors are as follows: n=1 .93 n 2 .86 n-3 .79 n-4 .74 n-5 .68 Record the journal entry for the purchase of the machine. Record the necessary entry at the end of the first year to record the interest and the cash payment.

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