Question: Recording Entries for Long - Term Note Receivable; Effective Interest Method On January 1 of Year 1 , Jacobs Company sells land in return for

Recording Entries for Long-Term Note Receivable; Effective Interest Method
On January 1 of Year 1, Jacobs Company sells land in return for a $64,000 note, issued by Andress Company. The note is a $64,000,8%, annual interest-bearing note. Andress agrees to repay the $64,000 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.

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