Question: Packet Exercise 9.2 Continued Compute the amount of a liability with an annuity: Boujee Inc. purchased equipment on 1/1/2020. The company financed the purchase

Packet Exercise 9.2 Continued Compute the amount of a liability with an

Packet Exercise 9.2 Continued Compute the amount of a liability with an annuity: Boujee Inc. purchased equipment on 1/1/2020. The company financed the purchase by agree to sign a note payable and pay three annual installments of $231,125. Each annual payment includes principal AND interest on the unpaid balance. The market rate of interest for this r was 8%. Calculate the purchase price of the equipment. (hint: calculate the present value of the three annual payments) Record the journal entries (round all answers to the nearest dollar): 1/1/2020-Record the purchase of the equipment 12/31/2020 - Record the first annual payment of principal and interest. 12/31/2021 - Record the second annual payment of principal and interest. 12/31/2022-Record the third annual payment of principal and interest. What is the balance of the note payable on 12/31/2022 after all payments are made? Did the interest expense increase or decrease each year? Explain why.

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