3.Cool Globe Inc. entered into two transactions, as follows: Purchased equipment paying $20,300 at the date of purchase and signing a noninterest-bearing note requiring the balance to be paid in four annual installments of $20,300 on the anniversary date of the contract. Based on Cool Globe's 12% borrowing rate for such transactions, the implicit interest cost is $19,542. Purchased a tract of land in exchange for $10,300 cash that was paid immediately and signed a noninterest-bearing note requiring five $10,300 annual payments. The first annual payment of the note is due in one year. The fair value of the land is $47,500.

Required: Prepare the journal entries for these transactions.

Journal entry worksheet Purchased equipment paying $20,300 down and signed a non interest- bearing note requiring the balance to be paid in four annual installments of $20,300 on the anniversary date of the contract. Based on Cool Globe's 12% borrowing rate for such transactions, the implicit interest cost is $19,542. Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet Purchased a tract of land in exchange for $10,300 cash down payment and a non interest-bearing note requiring five $10,300 annual payments, with the first annual payment in one year. The fair value of the land is $47,500. Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general journal