Chapter 14 Long-Term Liabilities, Intermediate Accounting, Donald Kieso 16th Edition

I am confused with this problem. Need assistance with the boxes that are left blank. Thanks!!

Exercise 14-16

On January 1, 2017, Metlock Company makes the two following acquisitions.

1. Purchases land having a fair value of $220,000 by issuing a 4-year, zero-interest-bearing promissory note in the face amount of $333,975.

2. Purchases equipment by issuing a 7%, 8-year promissory note having a maturity value of $340,000 (interest payable annually on January 1).

The company has to pay 11% interest for funds from its bank.

a. Record the two journal entries that should be recorded by Metlock Company for the two purchases on January 1, 2017.

b. Record the interest at the end of the first year on both notes using the effective-interest method.

Exercise 14-16 On January 1, 2017, Metlock Company makes the two follovwing acquisitions. 1. Purchases land having a fair value of $220,000 by issuing a 4-year, zero-interest-bearing promissory note in the face amount of $333,975. Purchases equipment by issuing a 796, 8-year promissory note having a maturity value of $340,000 (interest payable annually on January 1). 2. The company has to pay 11% interest for funds from its bank. (a) Record the two journal entries that should be recorded by Metlock Company for the two purchases on January 1, 2017. (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 places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit (a) 1. January 1, 2017 220,000 on Notes Payable 113,975 Payable 333,975 2. January 1, 2017 on Notes Payable Payable (b) 1. December 31, 2017 Expense 24,200 on Notes Payable 24,200 2. December 31, 2017 Expense on Notes Payable 23,800