Problem 14-12 (Algo) Noninterest-bearing installment note [LO14-3] At the beginning of 2024. VHF Industries acquired a machine with a fair value of $6,339,740 by issuing a four-year, noninterestbearing note in the face amount of $8 million. The note is payable in four annual instaliments of $2 milion at the end of each year. 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. Note: Use tables, Excel, or a finencial calculator. (EV of S1. PV of S1. EVA of S1, PVA of S1, EVAD of S1 and PVAD of S1) Complete this question by entering your answers in the tabs below. What is the effective rate of interest implicit in the agreement? Problem 14-12 (Algo) Noninterest-bearing installment note [LO14-3] At the beginning of 2024. VHF Industries acquired a machine with a fair value of $6,339,740 by issuing a four-year, noninterestbearing note in the face amount of $8 million. The note is payable in four annual installments of $2 million at the end of each year. 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 joumal entry to record the purchase of the machine. Note: Use tables, Excel, or a financial calculator. (FV of S1. PV of S1. FVA of S1. PVA of \$1, EVAD of S1 and PVAD of S1) Complete this question by entering your answers in the tabs below. Prepare the necessary journal entries. Note: If no entry is required for a transaction/event, solect "No journal entry required" in the first account field. Enter your answers in whole dollar: 1 Record the purchase of the machine. 2 Record the first installment payment at December 31 , 2024. 3. Record the second installment payment at December 31 . 2025. At the beginning of 2024 , VHF Industries acquired a machine with-a fair value of $6,339,740 by issuing a four-year, noninterestbearing note in the face amount of $8 million. The note is payable in four annual installments of $2 million at the end of each year. 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. Note: Use tables, Excel, or a financial colculator. (EV of \$1. PY of \$1, EYA of \$1, PVA of S1. EVAD of S1 and PVAD or S1) Complete this question by entering your answers in the tabs below. 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. Note: 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: Journal entry worksheet