DesRosier Company acquires a machine on 1 January 20X6, with a non-interest-bearing note that requires $12,000 to be paid on 31 December 20X6 and again on 31 December 20X7. The note has no explicit interest, but the prevailing interest rate is 5% on liabilities of similar risk and duration. The cash equivalent cost of the machine is unknown.

(PV of $1, PVA of $1, and PVAD of $1.) (Use appropriate factor(s) from the tables provided.)

Required: Provide the journal entry to record the machine on 1 January 20X6. Use the net method to record the note payable. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round time value factor to 5 decimal places and final answer to the nearest whole dollar amount.)