On January $1,2022,$ Bonita AG makes the two following acquisitions.

Purchases land having a fair value of $290,000$ by issuing a $4-$year, zero$-$interest$-$bearing promissory note in the face amount of $440,240.$

Purchases equipment by issuing a $6\%,8-$year promissory note having a maturity value of $430,000($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 Bonita AG for the two purchases on January $1,2022.$

$($b$)$ Record the interest at the end of the first year on both notes.

$($Round present value factor calculations to $5$ decimal places, I $1\mathrm{.}25124$ and the final answer to $0$ decimal places e$8,58,971.$ If no entry is required, select $"$No Entry" for the account titles and enter O for the announts, Credit account titles are autonatically Indented when amount is entered. Do not indent manuallyal

No$.$ Date Account Titles and Explanation

Debit

Credit

$($a$)$ January $1.$

$2022$

January $1.$

$($b$)$ December

$31,2022$

December