At January 1, 2013, Brant Cargo acquired equipment by issuing a four-year, $175,000 (payable at maturity), 6% note. The market rate is 12%

1. Prepare the journal entry for Brant Cargo to record the purchase of the equipment

2.

Prepare the journal entry for Brant Cargo to record the interest at December 31, 2013.

3.	Prepare the journal entry for Brant Cargo to record the interest at December 31, 2014.