On January Crane Company 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.
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
b Record the interest at the end of the first year on both notes using the effectiveinterest method.
Round present value factor calculations to decimal places, eg and the final answer to decimal places, eg If no entry is
required, select No Entry" for the account titles and enter O 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.
List of Accounts
