View Policies Current Attempt in Progress On January 1, 2020, Nash Company makes the two following acquisitions. 1. Purchases land having a fair value of $310,000 by issuing a 4-year, zero-interest-bearing promissory note in the face amount of $470,602 Purchases equipment by issuing a 6%, 9-year promissory note having a maturity value of $460,000 (interest payable annually) 2. The company has to pay 11% interest for funds from its bank. (a) Record the two journal entries that should be recorded by Nash 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. (6) No. Date Account Titles and Explanation Debit Credit (a) January 1, 1. 2020 Land 310,000 Discount on Notes Payable 160602 Notes Payable 470602 2. January 1, 2020 Equipment Discount on Notes Payable 460,000 Notes Payable (b) 1. December 31, 2020 Interest Expense Discount on Notes Payable 2. December 31, 2020 Interest Expense Notes Payable Cash