Cool Globe Inc. entered into two transactions, as follows:

1. Purchased equipment paying $21,000 at the date of purchase and signing a noninterest-bearing note requiring the balance to be paid in three annual installments of $21,000 on the anniversary date of the contract. Based on Cool Globe's 10% borrowing rate for such transactions, the implicit interest cost is $10,776.
2. Purchased a tract of land in exchange for $11,000 cash that was paid immediately and signed a noninterest-bearing note requiring four $11,000 annual payments. The first annual payment of the note is due in one year. The fair value of the land is $40,000.

Prepare the journal entries for these transactions.