On January 1, Snipes Construction paid for earth-moving equipment by issuing a $340,000. 5-year note...
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On January 1, Snipes Construction paid for earth-moving equipment by issuing a $340,000. 5-year note that specified 3% interest to be paid on December 31 of each year. The equipment's retail cash price was unknown, but it was determined that a reasonable interest rate was 6%. (FV of $1. PV of $1. EVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) At what amount should Snipes record the equipment and the note? What journal entry should it record for the transaction? Complete this question by entering your answers in the tabs below. General Journal Price of Equipment At what amount should Snipes record the equipment and the note? (Round your answers to the nearest whole dollars.) Table values are based on: n Amount Present Value Loan repayments Interest Principal Price of equipment
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