At the beginning of 2021, VHF Industries acquired a machine with a fair value of $4,973,700 by issuing a three-year, noninterest-bearing note in the face amount of $6 million. The note is payable in three annual installments of $2 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:

2. to 4. Prepare the necessary journal entries.

5. Suppose the market value of the machine was unknown at the time of purchase, but the market rate of interest for notes of similar risk was 12%. Prepare the journal entry to record the purchase of the machine.

At January 1, 2021, Brant Cargo acquired equipment by issuing a six-year, $150,000 (payable at maturity), 6% note. The market rate of interest for notes of similar risk is 11%. (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. to 3. Prepare the necessary journal entries for Brant Cargo