At the beginning of 2018, VHF Industries acquired a equipment with a fair value of $9,112,050 by issuing a four-year, noninterest bearing note in the face amount of $12 million. The note is payable in four annual installments of $3 million at the end of each year (Fy 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? 2. to 4. Prepare the necessary journal entry. 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 Complete this question by entering your answers in the tabs below. Required 1 Required 2 to 4 Required 5 What is the effective rate of interest implicit in the agreement? Interest rate 2 12% (Required 1 Required 2 to 4 > At the beginning of 2018, VHF Industries acquired a equipment with a fair value of $9,112,050 by issuing a four year, noninterest bearing note in the face amount of $12 million. The note is payable in four 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 S1) (Use appropriate factor(s) from the tables provided.) Required: 1. What is the effective rate of interest implicit in the agreement? 2. to 4. Prepare the necessary journal entry. 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 to Required 5 equired for at 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 1 2 3 Record the purchase of the equipment. Note: Enter debits before credits. General Journal Debit Credit Date January 01, 2018 At the beginning of 2018, VHF Industries acquired a equipment with a fair value of $9,112,050 by issuing a four year, noninterest bearing note in the face amount of $12 million. The note is payable in four annual installments of $3 million at the end of each year! (FV of 51. 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? 2. to 4. Prepare the necessary journal entry. 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 to Required 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 Record the purchase of equipment. Note: Enter debits before credits. General Journal Debit Credit January 01, 2018
