On January 1, 2020, Ivanhoe Company makes the two following acquisitions. 1. | | Purchases land having a fair value of $330,000 by issuing a 4-year, zero-interest-bearing promissory note in the face amount of $483,153. | 2. | | Purchases equipment by issuing a 6%, 9-year promissory note having a maturity value of $380,000 (interest payable annually). | The company has to pay 10% interest for funds from its bank. (a) | | Record the two journal entries that should be recorded by Ivanhoe 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. 1.25124 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) 1. | January 1, 2020 | enter an account title to record the first purchase on January 1, 2017 | enter a debit amount | enter a credit amount | | | enter an account title to record the first purchase on January 1, 2017 | enter a debit amount | enter a credit amount | | | enter an account title to record the first purchase on January 1, 2017 | enter a debit amount | enter a credit amount | 2. | January 1, 2020 | enter an account title to record the second purchase on January 1, 2017 | enter a debit amount | enter a credit amount | | | enter an account title to record the second purchase on January 1, 2017 | enter a debit amount | enter a credit amount | | | enter an account title to record the second purchase on January 1, 2017 | enter a debit amount | enter a credit amount | (b) 1. | December 31, 2020 | to record the interest on the first note using the effective-interest method on December 31, 2017 | enter a debit amount | enter a credit amount | | | to record the interest on the first note using the effective-interest method on December 31, 2017 | enter a debit amount | enter a credit amount | 2. | December 31, 2020 | to record the interest on the second note using the effective-interest method on December 31, 2017 | enter a debit amount | enter a credit amount | | | to record the interest on the second note using the effective-interest method on December 31, 2017 | enter a debit amount | enter a credit amount | | | to record the interest on the second note using the effective-interest method on December 31, 2017 | enter a debit amount | enter a credit amount | | | | |