This paper discusses a project carried out at the Digital Laboratories of the Twente University of Technology. The purpose of the project was twofold: Firstly, to develop a digital hardware design and test method. Secondly, to build a hardware interpreter for an intermediate code of Pascal, the so-called P4 code. The implemented P4 machine is based on AM2901 bit slices. During the project a P4 interpreter running on an Intel 8080 system, and a microprogram assembler for the AM2901 were developed. This paper focuses on the hardware design and test method as applied to the implementation of the P4 machine. In particular, the simulation and emulation aspects of the method are discussed.