Your answer is partially correct.

On January $1,2$

ate

Account Titles and Explanation

Debit

Credit

Discount on Notes Payable

Notes Payable

$2025$

Equipment

$245895$

Discount on Notes Payable

$94105$

Notes Payable

$11,2025,$

Interest Expense

Discount on Notes Payable

$11,2025$

Interest Expense

Discount on Notes Payable$025,$ Crane Company makes the two following acquisitions.

Purchases land having a fair value of $$310,000\mathrm{.}00$ by issuing a $4-$year, zero$-$interest$-$bearing promissory note in the face amount of $$470,601\mathrm{.}79.$

Purchases equipment by issuing a $6\%,9-$year promissory note having a maturity value of $$340,000\mathrm{.}00($interest payable annually$).$

The company has to pay $11\%$ interest for funds from its bank.

Click here to view factor tables.

$($a$)$ Record the two journal entries that should be recorded by Crane Company for the two purchases on January $1,2025.$

$($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$.1\mathrm{.}25124$ and the final answer to $2$ decimal places, e$.$g$.58,971\mathrm{.}25.$ 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 the amount is entered. Do not indent manually. List all debit entries before credit entries.$)$

ate

Account Titles and Explanation

Debit

Credit

Discount on Notes Payable

Notes Payable

$2025$

Equipment

$245895$

Discount on Notes Payable

$94105$

Notes Payable

$11,2025,$

Interest Expense

Discount on Notes Payable

$11,2025$

Interest Expense

Discount on Notes Payable

Your answer is partially correct.

On January $1,2025,$ Crane Company makes the two following acquisitions.

Purchases land having a fair value of $$310,000\mathrm{.}00$ by issuing a $4-$year, zero$-$interest$-$bearing promissory note in the face amount of $$470,601\mathrm{.}79.$

Purchases equipment by issuing a $6\%,9-$year promissory note having a maturity value of $$340,000\mathrm{.}00($interest payable annually$).$

The company has to pay $11\%$ interest for funds from its bank.

Click here to view factor tables.

$($a$)$ Record the two journal entries that should be recorded by Crane Company for the two purchases on January $1,2025.$

$($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, eg$.1\mathrm{.}25124$ and the final answer to $2$ decimal places, eg$.58,971\mathrm{.}25.$ 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 the amount is entered. Do not indent manually. List all debit entries before credit entries.$)$

ate

Account Titles and Explanation

Debit

Credit

Land $$

Discount on Notes Payable $$

$$

$$

Equipment $$

Discount on Notes Payable $$

Notes Payable $$

Interest Expense $$

$,34100$

$34100$

$$

$27049$

Discount on Notes Payable $$