On January Fisher Company makes the two following acquisitions.
Purchases land having a fair market value of $ by issuing a year, ZEROINTERESTbearing promissory note in the face amount of $
Purchases equipment by issuing a year promissory note having a maturity value of $interest payable annually The company has to pay interest for funds from its bank.
a Record the two journal entries that should be recorded by Fisher Company for the two purchases on January
b Record the interest at the end of the first TWO YEARS on both notes using the EFFECTIVEINTEREST METHOD.
Please answer ALL parts showing journal entries.
Also give explanation of the math used.
Everyone has been giving a different answers. This is my sixth time requesting this since yesterday.
