On January $1,2025,$ Blossom Company makes the two following acquisitions.

Purchases land having a fair value of $$370,000\mathrm{.}00$ by issuing a $4-$year, zero$-$interest$-$bearing promissory note in the face amount of $$561,686\mathrm{.}01.$

Purchases equipment by issuing a $7\%,8-$year promissory note having a maturity value of $$550,000\mathrm{.}00($interest payable annually$).$

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

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$($a$)$ Record the two journal entries that should be recorded by Blossom Company for the two purchases on January $1,2025.$

$($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 $2$ decimal places, e$.$g$.58,971\mathrm{.}25.$ If no entry is required, select $"$No Entry" for the account titles and enter $O$ for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.$)$

Date

Account Titles and Explanation

Debit

Credit