On August 31st, Old City Furniture acquired a new edge bander from IntraWood Machinery. Dennis Campbell, Old City's owner, paid $60,000 in cash and had a 5% note for $115,000. Following the purchase, Dennis incurred freight charges on account of $ 5,000 to ship the machine to the factory. After the machine was installed, IntraWood Machinery charged Dennis $7,200 to install the machine to the factory's specifications. 

Required: Prepare a journal entry to record the purchase of the equipment. Date Account and Explanation Debit Credit Aug. 31 Equipment Cash Notes Payable Accounts Payable.