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On January 1 2014 Ellen Greene Company makes the two following acquisitions Purchases land having a fair value of $200000 by issuing a 5-year zero-interest-bearing promissory note in the

On January 1, 2014, Ellen Greene Company makes the two following acquisitions.

1.   Purchases land having a fair value of $200,000 by issuing a 5-year, zero-interest-bearing promissory note in the face amount of $337,012.
2.   Purchases equipment by issuing a 6%, 8-year promissory note having a maturity value of $250,000. (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 Ellen Greene Company for the two purchases on January 1, 2014.
(b)   Record the interest at the end of the first year on both notes using the effective-interest method.


(Round answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.

Date

Account Titles and Explanation

Debit

Credit

(a) 1.

January 1, 2014

Image for On January 1, 2014, Ellen Greene Company makes the two following acquisitions. Purchases land having a fair

Image for On January 1, 2014, Ellen Greene Company makes the two following acquisitions. Purchases land having a fair

Image for On January 1, 2014, Ellen Greene Company makes the two following acquisitions. Purchases land having a fair

   

Image for On January 1, 2014, Ellen Greene Company makes the two following acquisitions. Purchases land having a fair

Image for On January 1, 2014, Ellen Greene Company makes the two following acquisitions. Purchases land having a fair

Image for On January 1, 2014, Ellen Greene Company makes the two following acquisitions. Purchases land having a fair

   

Image for On January 1, 2014, Ellen Greene Company makes the two following acquisitions. Purchases land having a fair

Image for On January 1, 2014, Ellen Greene Company makes the two following acquisitions. Purchases land having a fair

Image for On January 1, 2014, Ellen Greene Company makes the two following acquisitions. Purchases land having a fair

2.

January 1, 2014

Image for On January 1, 2014, Ellen Greene Company makes the two following acquisitions. Purchases land having a fair

Image for On January 1, 2014, Ellen Greene Company makes the two following acquisitions. Purchases land having a fair

Image for On January 1, 2014, Ellen Greene Company makes the two following acquisitions. Purchases land having a fair

   

Image for On January 1, 2014, Ellen Greene Company makes the two following acquisitions. Purchases land having a fair

Image for On January 1, 2014, Ellen Greene Company makes the two following acquisitions. Purchases land having a fair

Image for On January 1, 2014, Ellen Greene Company makes the two following acquisitions. Purchases land having a fair

   

Image for On January 1, 2014, Ellen Greene Company makes the two following acquisitions. Purchases land having a fair

Image for On January 1, 2014, Ellen Greene Company makes the two following acquisitions. Purchases land having a fair

Image for On January 1, 2014, Ellen Greene Company makes the two following acquisitions. Purchases land having a fair

(b) 1.

December 31, 2014

Image for On January 1, 2014, Ellen Greene Company makes the two following acquisitions. Purchases land having a fair

Image for On January 1, 2014, Ellen Greene Company makes the two following acquisitions. Purchases land having a fair

Image for On January 1, 2014, Ellen Greene Company makes the two following acquisitions. Purchases land having a fair

   

Image for On January 1, 2014, Ellen Greene Company makes the two following acquisitions. Purchases land having a fair

Image for On January 1, 2014, Ellen Greene Company makes the two following acquisitions. Purchases land having a fair

Image for On January 1, 2014, Ellen Greene Company makes the two following acquisitions. Purchases land having a fair

2.

December 31, 2014

Image for On January 1, 2014, Ellen Greene Company makes the two following acquisitions. Purchases land having a fair

Image for On January 1, 2014, Ellen Greene Company makes the two following acquisitions. Purchases land having a fair

Image for On January 1, 2014, Ellen Greene Company makes the two following acquisitions. Purchases land having a fair

   

Image for On January 1, 2014, Ellen Greene Company makes the two following acquisitions. Purchases land having a fair

Image for On January 1, 2014, Ellen Greene Company makes the two following acquisitions. Purchases land having a fair

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