Following are three separate cases.

Case 1. Equipment with a list price of $78,000 is purchased on account; terms are 2/10, n/30. Payment is made within the discount period.

Case 2. Equipment with a list price of $52,000 is purchased on account; terms are 2/10, n/30. Payment is made after the discount period. Any purchase discounts lost are recorded as interest expense.

Case 3. Equipment listed at $23,400 (less a 2% discount for cash purchases) is purchased for cash. To take advantage of this discount, the company simultaneously borrowed $20,800 from a bank by issuing a 60-day, 15% note, which is paid in full with interest at its maturity date.

For Case 1 and Case 2, prepare journal entries for (a) equipment acquisition, and (b) cash payment.