. Equipment with a book value of $70,000 and a fair value of $100,000 was sold at the beginning of the year. A 2-year, non-interest-bearing note for $129,960 was received and recorded at its face value, and a gain of $59,960 was recognized. No interest revenue was recorded and 14% is a fair rate of interest. f (1). Record the adjustment needed to correct the sale of equipment. General Journal Instructions How does grading work? PAGE 1 GENERAL JOURNAL Score: 9/25 DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT Jan. 1 notes receivable 129,960.00 Equipment 80,000.00 Points: 1.8 / 5 Check My Work A 2-year, non-interest-bearing note for $129,960 was received and recorded at its face value, and a gain of $59,960 was recognized. You have enough information to calculate the interest without PV tables by comparing the fair value of the equipment to the face value of the note, or by fixing the amount of the gain. Assume this entry was made: PAGE 1 GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT 1 Jan. 1 Notes Receivable 131 129,960.00 2 Accumulated Depreciation 198 10,000.00 3 Equipment 181 80,000.00 4 Gain on Sale of equipment 436 59,960.00 f (2). Prepare the adjustment needed to correct interest related to the note. General Journal Instructions How does grading work? PAGE 1 GENERAL JOURNAL Score: 12/25 DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT Jan. 1 Equipment Retained Earnings 18,194.40