LO 9.3 On January 1 , Northern Manufacturing Company bought a piece of equipment by signing a non-interest-bearing $80,000, 1-year note. The face value of the note includes the price of the equipment and the interest. The effective interest rate is an annual rate of 16%, and the note is to be paid in four $20,000 quarterly installments on March 31 , June 30 , September 30, and December 31. The price of the equipment is the present value of the four payments discounted at the effective interest rate. REQUIRED: 1. Prepare all journal entries to record the preceding information. Present value techniques should be used. 2. If Northern's financial statements were issued on June 30 , what amount would the company report as notes payable? LO 9.3 On January 1 , Northern Manufacturing Company bought a piece of equipment by signing a non-interest-bearing $80,000, 1-year note. The face value of the note includes the price of the equipment and the interest. The effective interest rate is an annual rate of 16%, and the note is to be paid in four $20,000 quarterly installments on March 31 , June 30 , September 30, and December 31. The price of the equipment is the present value of the four payments discounted at the effective interest rate. REQUIRED: 1. Prepare all journal entries to record the preceding information. Present value techniques should be used. 2. If Northern's financial statements were issued on June 30 , what amount would the company report as notes payable