Yes, if Account 1 was an excess contribution for 2020 and you requested to remove the excess plus earnings in 2021 before the due date then the earnings should be taxable in 2020. therefore the code in box 7 of your Account 1 1099-R should be PJ.
You might want to check with your financial institution why they used the code 8J for Account 1.
The IRS states:
How to treat withdrawn interest or other income.
You must include in your gross income the interest or other income that was earned on the excess contribution. Report it on your return for the year in which the excess contribution was made.
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