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Spicer Corporation issued a $3-$year, $$60,000,6\%$ note to Dorman Company on January $1,2022,$ and received an excavator that normally sells for $$54,031.$ The note requires annual interest payments each December $31.$ The market rate of interest for a note of similar risk is $10\%.$

Prepare Spicer's journal entries for $($a$)$ the January $1$ issuance and $($b$)$ the December $31$ interest. $($Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts.$)$

Account Titles and Explanation

$($a$)$ Equipment

$($b$)$ Interest Expense

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List of Accounts