TVM for class 2

TVM for class 2 - annual payment? ### What is the journal...

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ABC Company purchased a new machine.   The cost of the machine was $500,000 ABC agreed to make five annual payments with the first payment one year after the purchase.  If the appropriate interesst rate is 6% per year, what is the size of the
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Unformatted text preview: annual payment? ### What is the journal entry at the purchase date? Machine 500,000 N/P 500,000 What is the entry at the time of the first payment? Interest expense 30,000 Note payable 88,698 Cash 118,698...
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