Exercise 14-16 On January 1, 2017, Vaughn Company makes the two following acquisitions. 1. Purchases land having a fair value of $330,000 by issuing a 4-year, zero-interest-bearing promissory note in the face amount of $483,153 2. Purchases equipment by issuing a 6%, 9-year promissory note having a maturity value of $380,000 (interest payable annually on January 1) The company has to pay 10% interest for funds from its bank. (a) Record the two journal entries that should be recorded by Vaughn Company for the two purchases on January 20. (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 O deca nar place se 9-SS 9,1 f no entry is required. Seiect No Entry for the account titles and enter O 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 2. January 1, 2017 (b) 1. December 31, 2017 2. December 31, 2017