On January $1,2020,$ Kingbird Company makes the two following acquisitions.

Purchases land having a fair value of $$360,000$ by issuing a $5-$year, zero$-$interest$-$bearing promissory note in the face amount of $$606,621.$

Purchases equipment by issuing a $7\%,8-$year promissory note having a maturity value of $$560,000($interest payable annually$).$

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

$($a$)$ Record the two journal entries that should be recorded by Kingbird 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 places, e$.$g$.1\mathrm{.}25124$ 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$)$ January $1,$

$2020$

Land

$360000$

Allowance for Doubtful Accounts

Notes Payable

January $1,2020$

Equipment