On July 1, 2021, Gordon Co. purchased $7,000 of inventory by delivering a note payable due in one year with interest at 12% annually.

1. Make the following daily entries:
   1. July 1, 2001 when the inventory is purchased with the note payable.

1. 2. December 31, 2021 when the adjustment entry is made to recognize the accumulation of the company's interest expense at the end of the accounting year.

1. 3. July 1, 2022 when the payment of the note payable is made with the interest owed.