Cool Globe Inc. entered into two transactions, as follows: Purchased equipment paying $19,700 at the date of purchase and signing a noninterest-bearing note requiring the balance to be paid in three annual installments of $19,700 on the anniversary date of the contract. Based on Cool Globe's 10% borrowing rate for such transactions, the implicit interest cost is $10,109. Purchased a tract of land in exchange for $11,300 cash that was paid immediately and signed a noninterest-bearing note requiring four $11,300 annual payments. The first annual payment of the note is due in one year. The fair value of the land is $41,200. Required: Prepare the journal entries for these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Purchased a tract of land in exchange for $11,300 cash down payment and a non interest-bearing note requiring four $11,300 annual payments, with the first annual payment in one year. The fair value of the land is $41,200.

Note: Enter debits before credits.