1 value: 10.00 points Problem 14-12 Noninterest-bearing installment note [LO14-3] At the beginning of 2016, VHF Industries acquired a equipment with a fair value of $5,070,150 by issuing a two-year, noninterest-bearing note in the face amount of $6 million. The note is payable in two annual installments of $3 million at the end of each year. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. What is the effective rate of interest implicit in the agreement? Interest rate 2. to 4. Prepare the necessary journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollar.) View transaction list Journal entry worksheet 2 1 3 Record the purchase of the equipment Note: Enter debits before credits. Date General Journal Debit Credit January 01, 2016 Record entry Clear entry View general journal 5. Suppose the market value of the equipment was unknown at the time of purchase, but the market rate of interest for notes of similar risk was 11%. Prepare the journal entry to record the purchase of the equipment. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollar.) View transaction list Journal entry worksheet 1 Record the purchase of equipment Note: Enter debits before credits General Journal Date Debit Credit January 01, 2016 Record entry Clear entry View general journal