Business, 09.09.2019 20:30 kikirogers3882
Shaw industries purchased a large piece of equipment from charles company on january 1, 2014. shaw industries signed a note, agreeing to pay charles company $400,000 for the equipment on december 31, 2016. the market rate of interest for similar notes was 8%. the present value of $400,000 discounted at 8% for three years was $317,520. on january 1, 2014, shaw industries recorded the purchase with a debit to equipment for $317,520 and a credit to notes payable for $317,520. on december 31, 2014, shaw recorded an adjusting entry to account of interest that had accrued on the note. assuming no adjusting entries have been made during the year, the interest expense accrued at december 31, 2014 is closest to:
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Shaw industries purchased a large piece of equipment from charles company on january 1, 2014. shaw i...
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