Question: Recording Entries for Long-Term Note Recelvable; Effective Interest Method On january 1 of Year 1. Jacobs Company sells land in retum for a $96,000 note,

Recording Entries for Long-Term Note Recelvable; Effective Interest Method On january 1 of Year 1. Jacobs Company sells land in retum for a $96,000 note, tisued by Andress Company the note is a 396,000,80, annual interest-bearing note. Andiess agreei to repay the 196,000 proceeds on December 31 of Year 2 . The prevailing interest rate on sim lar noter is 11 this Assume that the cost of the land is equal to the fair value of the note Required - Note- Round answers to the nearest whole dotiar. a. Piepare 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 intereat method to

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