Cool Globe Inc. entered into two transactions, as follows: 1. Purchased equipment paying $19,500 down and signed a noninterest-bearing note requiring the balance to be paid in four annual installments of $19,500 on the anniversary date of the contract. Based on Cool Globe's 12% borrowing rate for such transactions, the implicit interest cost is $18,772. 2. Purchased a tract of land in exchange for $11,500 cash down payment and a noninterest-bearing note requiring five $11,500 annual payments, with the first annual payment in one year. The fair value of the land is $53,500. Required: Prepare the journal entries for these transactions.