Ch. 14, Q. 2

On January 1, 2020, Blossom Company makes the two following acquisitions. 1. Purchases land having a fair value of $150,000 by issuing a 5-year, zero-interest-bearing promissory note in the face amount of $252,759. 2. Purchases equipment by issuing a 6%, 9-year promissory not having a maturity value of $180,000 (interest payable annually The company has to pay 11% interest for funds from its bank. (a) Record the two journal entries that should be recorded by Blossom Company for the two purchases on January 1, 2020. (b) Record the interest at the end of the first year on both notes using the effective-interest method. (Round present value factor calculations to 5 decimal plooses 125124 and the final answer to decimal plasse 58.971If no entry is required, select "No Entry for the account tits and enter for the amounts Credit account titlesarautomatically inde No. Date Account Titles and Explanation Debit Credit (a) 1 January 1, 2020 2. January 1, 2020 (b) 1. December 31, 2020 2 December 31, 2020