Inguinal Mfg. purchased a speciality lathe for $286,500 on September 30, 2020. They paid $20,000 cash and gave the seller a note payable for the balance of the cost on the date of purchase. Inguinal estimates the lathe will have a useful life of 15 years and will retain a salvage value of $2,000. The company uses straight-line depreciation and takes depreciation to the nearest month 'in the year of acquisition.

What is the entry on the date of purchase?

What are the required adjusting journal entries on 12/31/20 and 12/31/21 for this asset?