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MoonShine Company signed a note for $85,000 to purchase a new piece of equipment. MoonShine will pay the $85,000 back at the end of two
MoonShine Company signed a note for $85,000 to purchase a new piece of equipment. MoonShine will pay the $85,000 back at the end of two years along with any accrued interest. The annual interest rate on the loan is 6%.1. Compute the present value of this long-term liability. 2. Prepare the journal entry MoonShine will record on the day it purchases the piece of equipment and signs the note.
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