At the beginning of 2021, VHF Industries acquired a machine with a fair value of $9,127,520 by issuing a seven-year, noninterest- bearing note in the face amount of $14 million. The note is payable in seven 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: 1. What is the effective rate of interest implicit in the agreement? 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 11%. Prepare the journal entry to record the purchase of the machine. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. X Answer is complete but not entirely correct. 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 12% Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 to 4 Required 5 Prepare the necessary journal entries. (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.) No Date General Journal Debit Credit 1 9,127,520 January 01, 2021 Equipment Notes payable 14,000,000 X 2 December 31, 202 Interest expense 1,095,302 2,000,000 X Notes payable Cash 2,000,000 3 986,739 December 31, 202 Interest expense Notes payable 9 2,000,000 X Cash 2,000,000 > X Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 to 4 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.) No Date General Journal Debit Credit 1 9,424,400 January 01, 2021 Equipment Notes payable 4,575,600 X