On January 1, 2020, Buffalo Company makes the two following acquisitions. 1 Purchases and having a fair value of $250,000 by issuing a 5-year, zero-interest-bearing promissory note in the face amount of $421.265 Purchases equipment by issuing a 7%, 9-year promissory note having a maturity value of $420,000 (interest payable annually). 2 The company has to pay 11% interest for funds from its bank. (a) (b) Record the twojournal entries that should be recorded by Buffalo Company for the two purchases on January 1, 2020. 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 decimal places e.3. 58,971. 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 amount is entered. Do not indent manually.) Debit Credit Account Titles and Explanation No. (a) 1 Date January 1 2020 January 1. (Round present value factor calculations to 5 decimal places, eg, 1.25124 and the final answer to decimal places es. 58,971. If no entry is required, select "No Entry for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually) Date Account Titles and Explanation Debit (a) January 1 2020 Credit No. 1. 2. January 1, 2020 (b) 1 December 31, 2020 2 December 31.2020