Webb Corporation purchased equipment from Shaw Corporation on January 1, 2019. Shaw accepted a 3-year, non-interest-bearing note of $18,000 due December 31, 2021, in exchange for the equipment. Neither the fair value of the equipment nor that of the note is available. Webbs incremental borrowing rate is 12%.

Required: Prepare the journal entries to record the issuance of the note, retirement, and any interest expense on the books of Webb on each of the following dates:

1. January 1, 2019

2. December 31, 2019

3. December 31, 2020

4. December 31, 2021