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

1. Purchased equipment paying $20,800 at the date of purchase and signing a noninterest-bearing note requiring the balance to be paid in four annual installments of $20,800 on the anniversary date of the contract. Based on Cool Globe's 8% borrowing rate for such transactions, the implicit interest cost is $14,308.
2. Purchased a tract of land in exchange for $10,800 cash that was paid immediately and signed a noninterest-bearing note requiring six $10,800 annual payments. The first annual payment of the note is due in one year. The fair value of the land is $60,800.

Required: Prepare the journal entries for these transactions.