Machine #2 was acquired using a zero-interest bearing note, so a present value calculation is required. You can earn all allotted points if you correctly use the time value of money tables from Ch. 6. HOWEVER, if you successfully use the present value function within Excel, you can earn a few additional points.

Marko Manufacturing is expanding its operations and acquiring three new machines. All three acquisitions are made on March 1, 2021. The terms of acquisition for each machine are described below. 2,000 1. Machine #1 List price 15,000 Cash acquisition cost 13,900 2. Machine #2 Acquisition cost Cash down payment Face amount of zero-interest-bearing note given 14,000 Note due date March 1, 2024 Normal interest rate for this borrowing 6% 3. Machine #3 Number of common stock shares in Marko Manufacturing iss 3,500 Par value of common stock per share $ 0.75 Market value of common stock per share $ 4.00 Instructions: Prepare the appropriate journal entries for the above transactions for Marko Manufacturing. FOLLOW DIRECTIONS provided on the second sheet of this Excel file. Debit Credit 1 2 3