Recording Entries for Long$-$Term Note Receivable; Effective Interest Method

On January $1$ of Year $1,$ Jacobs Company sells land in return for a $$72,000$ note, issued by Andress Company. The note is a $$72,000,8\%,$ annual interest$-$bearing note. Andress agrees to repay the $$72,000$ proceeds on December $31$ of Year $2.$ The prevailing interest rate on similar notes is $11\%.$ Assume that the cost of the land is equal to the fair value of the note.

Required

$$ Note: Round answers to the nearest whole dollar.

a$.$ Prepare entries for Jacobs on $(1)$ January $1$ of Year $1$ for the sale of land and $(2)$ December $31$ of Year $1$ for interest received on the note. Use the effective interest method to amortize the discount.