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On January 1, 2020. Bonita Company makes the two following acquisitions. 1. Purchases land having a fair value of $300,000 by issuing a 5-year, zero-interest-bearing

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On January 1, 2020. Bonita Company makes the two following acquisitions. 1. Purchases land having a fair value of $300,000 by issuing a 5-year, zero-interest-bearing promissory note in the face amount of $528.703. 2. Purchases equipment by issuing a 696, 9-year promissory note having a maturity value of $340,000 (interest payable annually). The company has to pay 12% interest for funds from its bank. (a) Record the two journal entries that should be recorded by Bonita 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, eg. 1.25124 and the final answer to O decimal places eg. 58,971. If no entry is required, select "No Entry for the account titles and enter Ofor the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Date Debit Credit Account Titles and Explanation Land (a) 1. January 1, 2020 300,000 Discount on Notes Payable 228.703 Notes Payable 528,703 2. January 1, 2020 Equipment Discount on Notes Payable Notes Payable 340,000 (b) 1. December 31, 2020 Inter Discount on Notes Payable 2. December 31, 2020 Cash Discount on Notes Payable On January 1, 2020. Bonita Company makes the two following acquisitions. 1. Purchases land having a fair value of $300,000 by issuing a 5-year, zero-interest-bearing promissory note in the face amount of $528.703. 2. Purchases equipment by issuing a 696, 9-year promissory note having a maturity value of $340,000 (interest payable annually). The company has to pay 12% interest for funds from its bank. (a) Record the two journal entries that should be recorded by Bonita 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, eg. 1.25124 and the final answer to O decimal places eg. 58,971. If no entry is required, select "No Entry for the account titles and enter Ofor the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Date Debit Credit Account Titles and Explanation Land (a) 1. January 1, 2020 300,000 Discount on Notes Payable 228.703 Notes Payable 528,703 2. January 1, 2020 Equipment Discount on Notes Payable Notes Payable 340,000 (b) 1. December 31, 2020 Inter Discount on Notes Payable 2. December 31, 2020 Cash Discount on Notes Payable

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