On January 1, 2025, Sunland Company makes the two following acquisitions 1 Purchases and having a fair value of $250,000.00 by issuing a 5-year, zero-interest-bearing promissory note in the face amount of $421.265. 2 Purchases equipment by issuing a 6%, 9-year promissory note having a maturity value of $380,000.00 (interest payable annually) The company has to pay 11% interest for funds from its bank Click here to view factor tables Record the two journal entries that should be recorded by Sunland Company for the two purchases on January 1, 2025 (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, eg 1.25124 and the frial anwer to 2 decimal places, eg. 58,971.25. 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 the amount is entered. Do not indent manually List all debit entries before credit entries) No. Date Account Titles and Explanation Debit

On January 1, 2025, Sunland Company makes the two following acquisitions 1 Purchases and having a fair value of $250,000.00 by issuing a 5-year, zero-interest-bearing promissory note in the face amount of $421.265. 2 Purchases equipment by issuing a 6%, 9-year promissory note having a maturity value of $380,000.00 (interest payable annually) The company has to pay 11% interest for funds from its bank Click here to view factor tables Record the two journal entries that should be recorded by Sunland Company for the two purchases on January 1, 2025 (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, eg 1.25124 and the frial anwer to 2 decimal places, eg. 58,971.25. 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 the amount is entered. Do not indent manually List all debit entries before credit entries) No. Date Account Titles and Explanation Debit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Current Attempt in Progress
On January 1, 2025, Sunland Company makes the two following acquisitions
1.
2.
(2)
(b)
The company has to pay 11% interest for funds from its bank
Click here to view factor tables
Purchases and having a fair value of $250,000.00 by issuing a 5-year, zero-interest-bearing promissory note in the face
amount of $421.265.
No.
Purchases equipment by issuing a 6%, 9-year promissory note having a maturity value of $380,000.00 (interest payable
annually)
(a)
(Round present value factor calculations to 5 decimal places, eg 1.25124 and the final answer to 2 decimal places, eg 58,971.25. 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 the amount
is entered. Do not indent manually List all dehit entries before credit entries)
Record the two journal entries that should be recorded by Sunland Company for the two purchases on January 1, 2025.
Record the interest at the end of the first year on both notes using the effective interest method
Date
Account Titles and Explanation
Debit

The company has to pay 11% interest for funds from its bank
Click here to view factor tables
IN Record the two journal entries that should be recorded by Sunland Company for the two purchases on January 1, 2025
Record the interest at the end of the first year on both notes using the effective-interest method
thi
(Round present value foctor calculations to 5 decimal places, s 1.25124 and the final answer to 2 decimal places a 58,971.25.fentry
requi, select "No try for the account titles and enter for the amounts Credit account titles one automatically indented when the mount
internal. Do not indent manually. List of dehit entries before credit entries
Account Titles and Explanation
No.
tal
1.
Date
Debit

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