On July 31, 2016, a company purchased equipment for $154,800, paying $42,000 cash and signing a 4% note payable for the remainder. The interest and principal of the note are due on January 31, 2017.

Prepare the journal entry to record the purchase of the equipment on July 31, 2016. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)