Question 2 3.33 points Save Answ On January 1, 2019, Cuauhtmoc Company acquired a piece...
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Question 2 3.33 points Save Answ On January 1, 2019, Cuauhtmoc Company acquired a piece of machinery and signed a 24-month note for $30,000. The face value of the note includes the price of the machinery and interest. The note is to be paid in four $7,500 semi-annual installments. The value of the machinery is the present value of the four semi-annual payments discounted at an annual interest rate of 12%. The adjusting entries on December 31, 2019 would include: A debit to Interest Expense of $1,559.30 A credit to Notes Payable of $7,500 A debit to Discount on Notes Payable of $1,559.30 A debit to Interest Expense of $1,202.85
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