On January 1, Snipes Construction paid for earth-moving equipment by issuing a $470,000, 6-year note that specified 4% interest to be paid on December 31 of each year. The equipments retail cash price was unknown, but it was determined that a reasonable interest rate was 7%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) At what amount should Snipes record the equipment and the note? What journal entry should it record for the transaction?