Please explain how you get the PV.
Homework Answers
Purchase price = PVF8%,10* Amount of note
= .46319 * 130000
= $ 60214.7 (rounded to 60215)
**Find present value factor from table at 8% for 10 periods
or using the formula 1/(1+i)^n where i= 8% and n= 10
b)
| Date | Account title | Debit | credit |
| 1Jan | Machinery | 60215 | |
| Note payable | 60215 | ||
| 31Dec | Note payable | 8183 | |
| Interest expense (60215*8%) | 4817 | ||
| cash | 13000 |
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Please explain how you get the PV.
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