OConner Company has a year ending on December 31. The company purchased equipment costing $88,000 on October 2, 2020. The equipment was purchased by paying 30% down and signing a 9%, 120-day note payable for the balance.

Prepare the journal entries to record the following events. Use a 360-day year and round all amounts to the nearest dollar.

1. The purchase of the equipment on October 2, 2020:

Debit Credit

2. The accrual of interest on December 31, 2020:

Debit Credit

3. Payment of the note on January 30, 2021:

Debit Credit