e company carried out the following transactions during Years 1 to Year 6, Year 1: January 1: Purchased equipment for $120,000 cash. It has a 10-year life, a $20,000 residual value and will be depreciated using the straight-line method. January 1: Purchased land for $280,000 cash. October 31: Borrowed $340,000 from the bank by issuing a three-month 9% note. December 31: Accrued interest on the note of October 31. You can round to the nearest full month. December 31: A pending product liability lawsuit will more likely than not be lost. A reasonable estimate of the loss is $50,000. We accrued the contingency. December 31: Journalized depreciation on the equipment. Year 2: January 31: Repaid the October 31 note plus interest. Year 6: July 10: Traded our land acquired in Year 1) plus $60,000 cash for a small airplane. The airplane has a market value of $380,000. September 20: Sold the equipment for $52,000 cash. Depreciation expense for Years 2 to 5 has already been properly recorded. Instructions: Prepare all the required journal entries for the above transactions