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  3. 1. on january 1, 2020, bridgeport company makes th

1. On January 1, 2020, Bridgeport Company makes the two following acquisitions. Purchases land having...

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Accounting

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1. On January 1, 2020, Bridgeport Company makes the two following acquisitions. Purchases land having a fair value of $290,000 by issuing a 5-year, zero-interest-bearing promissory note in the face amount of $488,667 Purchases equipment by issuing a 6%, 8-year promissory note having a maturity value of $330,000 (interest payable annually). 2. The company has to pay 11% interest for funds from its bank. (a) Record the two journal entries that should be Pecorded by Bridgeport Company for the two purchases on January 1, 2020. (b) Record the interest at the end of the first year on both notes using the effective-interest method

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