On January Bonita AG makes the two following acquisitions.
Purchases land having a fair 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 Bonita AG for the two purchases on January
b Record the interest at the end of the first year on both notes.
Round present value factor calculations to decimal places, I and the final answer to decimal places e 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
January
b December
December
