On January $1,2015,$ Peg, Inc. bought some equipment by signing a non$-$interest bearing note for $$160,000.$ The note is to be paid in four equal annual $$40,000$ payments, beginning on December $31,2015.$ Current interest rates were $8\%.$ The present value and future value information for $8\%,4$ periods follows:

Future value of $11\mathrm{.}360$

Present value of $10\mathrm{.}735$

Future value of an ordinary annuity of $14\mathrm{.}506$

Present value of an ordinary annuity of $13\mathrm{.}312$

Required:

Prepare the journal entries necessary on January $1,2015,$ December $31,2015.$