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Knowledge Check 01 Saunders Company purchased equipment by signing a noninterest-bearing note of $21.000 with payment due in three years. The equipment is custom-built, so

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Knowledge Check 01 Saunders Company purchased equipment by signing a noninterest-bearing note of $21.000 with payment due in three years. The equipment is custom-built, so its cash price is unavailable. Using a rate of 9%, which reflects the appropriate interest rate for a loan of this type of loan, the present value of the note is $16.216. Prepare the appropriate journal entry to record the purchase of the equipment

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