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On January 1,2022, Bonita AG makes the two following acquisitions. Purchases land having...

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Accounting

On January 1,2022, Bonita AG makes the two following acquisitions.
Purchases land having a fair value of 290,000 by issuing a 4-year, zero-interest-bearing promissory note in the face amount of 440,240.
Purchases equipment by issuing a 6%,8-year promissory note having a maturity value of 430,000(interest payable annually).
The company has to pay 11% interest for funds from its bank.
(a) Record the two journal entries that should be recorded by Bonita AG for the two purchases on January 1,2022.
(b) Record the interest at the end of the first year on both notes.
(Round present value factor calculations to 5 decimal places, I 1.25124 and the final answer to 0 decimal places e8,58,971. If no entry is required, select "No Entry" for the account titles and enter O for the announts, Credit account titles are autonatically Indented when amount is entered. Do not indent manuallyal
No. Date Account Titles and Explanation
Debit
Credit
(a) January 1.
2022
January 1.
(b) December
31,2022
December
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