Question 5On January 1, 2017, Grouper Company makes the two following acquisitions.1.Purchases land having a fair value of $250,000 by issuing a 5-year, zero-interest-bearing promissory note in the face amount of $421,265.2.Purchases equipment by issuing a 6%, 9-year promissory note having a maturity value of $380,000(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 Grouper Company for the two purchases on January 1, 2017.(b)Record the interest at the end of the Frst year on both notes using the e±ective-interest method.(Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the Fnal answer to 0 decimal places e.g. 58,971. If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indentedwhen amount is entered. Do not indent manually

Question 5On January 1, 2017, Grouper Company makes the two following acquisitions.1.Purchases land having a fair value of $250,000 by issuing a 5-year, zero-interest-bearingpromissory note in the face amount of $421,265.2.Purchases equipment by issuing a 6%, 9-year promissory note having a maturity value of $380,000(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 Grouper Company for the twopurchases on January 1, 2017.(b)Record the interest at the end of the Frst year on both notes using the e±ective-interest method.(Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the Fnalanswer to 0 decimal places e.g. 58,971. If no entry is required, select “No Entry” for theaccount titles and enter 0 for the amounts. Credit account titles are automatically indentedwhen amount is entered. Do not indent manually

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