On January 1, 2017, Coronado Company makes the two following acquisitions.

1. Purchases land having a fair value of $160,000 by issuing a 5-year, zero-interest-bearing promissory note in the face amount of $257,682.

2. Purchases equipment by issuing a 7%, 8-year promissory note having a maturity value of $230,000 (interest payable annually on January 1).

The company has to pay 10% interest for funds from its bank.

(a) Record the two journal entries that should be recorded by Coronado 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 manually.)

No.	Date	Account Titles and Explanation	Debit	Credit
(a) 1.	January 1, 2017
2.	January 1, 2017
(b) 1.	December 31, 2017
2.	December 31, 2017

Answer rating: 100% (QA)

a 1 Jan 1st 2017 landdb 160000 Discount on notes payabledb 97682 Notes payablecr 257682 ... View the full answer