On October 1, 2021, Owen Inc. purchased equipment costing $700,000 by paying $150,000 cash and signing a $550,000, 10%, 1-year note for the remainder. The face value of the note plus interest is due when the note matures in one year.

The equipment will be used in a variety of R&D activities. It is expected to have a useful life of 5-years and a residual value of $20,000. Owen elects to use the DDB method for the equipment.

Required: In the journal below, record the purchase of the equipment on October 1 and record depreciation and accrued interest on the note for 2021. Round all calculations to the nearest whole month and whole dollar.

Date		Debit	Credit
10/1/21
12/31/21
12/31/21