1 2 3 nstructions erty, Plant, and Equipment Hemingway Company purchases equipment by issuing a 7-year, $350,000 non-interest-bearing note, when the market rate for this type of note is 8%. Hemingway will pay off the note with equal payments year. Future Value of 1 fm = (1 + i)" General Journal Required: Prepare the journal entry to record Hemingway's acquisition of the equipment. Chart of Accounts ASSETS 111 Cash 121 Accounts Receivable 141 Inventory 152 Prepaid Insurance 181 Equipment 198 Accumulated Depreciation LIABILITIES 211 Accounts Payable 221 Notes Payable 222 Discount on Notes Payable 231 Salaries Payable 250 Unearned Revenue 261 Income Taxes Payable EQUITY 311 Common Stock 331 Retained Earnings CHART OF ACCOUNTS Hemingway Company General Ledger General Journal Instructions Prepare the journal entry to record Hemingway's acquisition of the equipment on January 1. DATE Jan 1. Equipment REVENUE 411 Sales Revenue EXPENSES 500 Cost of Goods Sold 511 Insurance Expense 512 Utilities Expense 521 Salaries Expense 532 Bad Debt Expense 540 Interest Expense 541 Depreciation Expense 559 Miscellaneous Expenses 910 Income Tax Expense GENERAL JOURNAL ACCOUNT TITLE count on Notes Payable Notes Payable POST. REF. DEBIT PAGE 10 CREDIT $359000

= Mentives: Cineral Joumal corcen xourut Discount on N Netes Payable most. Mrr betr factor I nieto Future value of 1 Sn=(a+i)