10. XXX Company purchased a machine to be used in constructing bridges. To finance the purchase, the company obtained a $100,000, 4-year, zero-interest-bearing note from their local bank. The company's incremental borrowing rate is 10%.

1. Using the attached T-account template, pre pare the entry to recognize the machine purchase and the debt acquired.

No. = ASSETS LIABILITIES + EQUITY Non-current Assets Current Assets Property, Plant & Equipment Investments Intangible Assets/Other Current Liabilities Non-Current Liabilities Contributed Capital Earned Capital Accumulated OCI