NO 1: Record the purchase of the machine.

NO 2: Record the first installment payment at December 31, 2021.

NO 3: Record the second installment payment at December 31, 2022.

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: 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 9%. Prepare the journal entry to record the purchase of the machine. Required 1 Required 2 to 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 January 01, 2021 Equipment 4,973,700 Discount on notes payable 1,026,300 Notes payable 6,000,000 1 2 2,000,000 December 31, 202 Notes payable Cash 2,000,000 2,000,000 December 31, 202 Notes payable Cash 2,000,000 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 9%. 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 1 > Record the purchase of the machine. Note: Enter debits before credits. General Journal Debit Credit Date January 01, 2021 Equipment