What account is it if it is not cash?:

Can you please explain why the account is not cash?

Your answer is partially correct. Try again. On January 1, 2017, Ellen Carter Company makes the two following acquisitions. 1. Purchases land having a fair value of $200,000 by issuing a 5-year, zero-interest-bearing promissory note in the face amount of $337,012. 2. Purchases equipment by issuing a 6%, 8-year promissory note having a maturity value of $250,000 (interest payable annually on January The company has to pay 11% interest for funds from its bank. (a) Record the two journal entries that should be recorded by Ellen Carter Company for the two purchases on January 1, 2017 (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 manualy.) No. Date Account Titles and Explanation Debit Credit (a) 1. January 1, 2017 Land 200000 Discount on Notes Payable 137012 Notes Payable 337012 2. January 1, 2017 185673 Discount on Notes Payable 64327 Notes Payable 250000 (b) 1. December 31, 2017 Interest Expense 22000 Discount on Notes Payable 22000 2. December 31, 2017 Interest Expense 20424 Cash 15000 Discount on Notes Payable 5424