Compound Interest and Journal Entries Study Appendix 9. A Munich company has bought some equipment on a contract entailing a 200,000 cash down payment and an e800,000 lump sum to be paid at the end of 4 years. The same equipment can be bought for 788,000 cash. ( refers to the euro, a unit of currency). 1. Prepare the journal entry for the acquisition of the equipment. 2. Prepare journal entries at the end of each of the first 2 years. Ignore entries for depreciation.