On January $1,2014,$ Fisher Company makes the two following acquisitions.

Purchases land having a fair market value of $$800,000$ by issuing a $5-$year, ZERO$-$INTEREST$-$bearing promissory note in the face amount of $$1,175,464.$

Purchases equipment by issuing a $4\%,8-$year promissory note having a maturity value of $$350,000($interest payable annually$).$ The company has to pay $8\%$ interest for funds from its bank.

$($a$)$ Record the two journal entries that should be recorded by Fisher Company for the two purchases on January $1,2014.$

$($b$)$ Record the interest at the end of the first TWO YEARS on both notes using the EFFECTIVE$-$INTEREST METHOD.