On January 1 of Year 1, Jet Air Inc. contracted with Systems Plus Inc. to manufacture equipment. Jet Air Inc. issued a $75,000 note to Systems Plus Inc. in exchange for the equipment. The note requires 5% interest payments annually over 3 years on December 31 of each year. Although the fair value of the equipment is not reasonably determinable, it was determined that 10% was a reasonable rate of interest for such a transaction. Provide journal entries to be made by Jet Air Inc. at each of the following dates. Note: Round your answer to the nearest whole dollar. Note: Adjust interest expense in Year 3 for any net rounding differences.

b. December 31, Year 1-Interest payment. c. December 31, Year 2-Interest payment. d. December 31, Year 3-Interest payment. e. December 31, Year 3-Note payment at maturity