Question: Hemingway Company purchases equipment by issuing a 7 year
Hemingway Company purchases equipment by issuing a 7- year, $ 350,000 non- interest- bearing note, when the market rate for this type of note is 10%. Hemingway will pay off the note with equal payments to be made at the end of each year. Prepare the journal entry to record Hemingway’s acquisition of the equipment.
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