Question: Recording Entries for Long-Term Note Receivable; Effective Interest Method agrees to fepay the 43,000 proceeds on December 31 of Year 2 . The prevailizg interest

Recording Entries for Long-Term Note Receivable; Effective Interest Method agrees to fepay the 43,000 proceeds on December 31 of Year 2 . The prevailizg interest rate on similiar rotes is 11%. Assume that the cost of the land is equal to the fair walite of the note Required - Note: Round answers to the nearest whole dollari a. Prepare entries for jacobs on (1) January I af Year 1 for the sale of land and (2) December 31 of Year 1 for interest received on the note Use the effective interest mechod to amontize the discount. b. Prepare entries on December 31 of Year 2 to record (1) interest received on the note and (2) the settlement of the

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