On December 31, 2018, A Company acquired a piece of equipment from B Company by issuing a Php 2,400,000 note payable in full on December 31, 2022. As credit rating permits it to borrow funds from its several lines of credit at 10%. The equipment is expected to have a 5-year life and a Php 300,000 salvage value. The present value of 1 at 10% for 4 periods is 0.68301.

Prepare the entry to record the issuance notes on Dec 31, 2018.