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

1.		Purchases land having a fair value of $250,000 by issuing a 4-year, zero-interest-bearing promissory note in the face amount of $379,518.
2.		Purchases equipment by issuing a 7%, 8-year promissory note having a maturity value of $290,000 (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 Swifty 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.

Account Titles and Explanation Debit Credit Date anuary 1, -020 Land 250,000 Discount on Notes Payable 129518 379518 Notes Payable January 1, 2020 Equipment Discount on Notes Payable Notes Payable December 31, 2020 Interest Expense Discount on Notes Payable December 31, 2020 Interest Expense Discount on Notes Payable Cash e Textbook and Media List of Accounts Attempts: 1 of 5 used Submit Answer Save for Later Last saved 3 minutes ago. Saved work will heat-cubmitted on the due date time.exe