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9 If a company takes out a 5-year equally amortizing loan of 20,000, and 6 months later purchases equipment with that loan, what will happen
9
If a company takes out a 5-year equally amortizing loan of 20,000, and 6 months later purchases equipment with that loan, what will happen to its financial statements?
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PP&E will increase by 4,000.
Current portion of long-term debt will increase by 4,000.
Capital expenditure will increase by 16,000.
Non-current portion of long-term debt will increase by 20,000.
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