1 On August 1, 2020, PC Inc. bought land and machinery to expand its furniture manufacturing business. PC Inc. issued a $3,210,000, 6-year, non-interest-bearing note to the seller in exchange for the land and machinery. PC Inc. obtained the following appraisal values for the land and machinery: Land $ 940,000 Machinery 1,410,000 Repayments of the note will occur at the end of each year, starting July 31, 2021, and ending July 31, 2026. Each payment will be in the amount of $535,000. 1 The prevailing rate of interest for a note of this type is 9%. PC Inc. has a year end of July 31. Required: Prepare the journal entry required on August 1, 2020 for the purchase of the land and machinery by PC Inc. Prepare the journal entry required on July 31, 2021 for the first note payment. Prepare the journal entry required for the second note payment on July 31, 2022