At the beginning of the year, Lambert Motors issued the three notes described below. Interest is...

  

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At the beginning of the year, Lambert Motors issued the three notes described below. Interest is paid at year-end. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) A. The company issued a two-year, 12%, $660,000 note in exchange for a tract of land. The current market rate of interest is 12%. B. Lambert acquired some office equipment with a fair value of $123,036 by issuing a one-year, $130,000 note. The stated interest on the note is 6%. C. The company purchased a building by issuing a four-year installment note. The note is to be repaid in equal installments of $1 million per year beginning one year hence. The current market rate of interest is 8%. Required: Prepare the journal entries to record each of the three transactions and the interest expense at the end of the first year for each. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in whole dollar.) View transaction list Vlew Journal entry worksheet No Event General Journal Debit Credit 1 A Land 660,000 Notes payable 660,000 A Interest expense 79,200 Interest payable 79,200 B Office equipment 123,036 Discount on notes payable 6,964 Notes payable 130,000 4. Interest expense Discount on notes payable Interest payable 7,800 L..... 2. 3. At the beginning of the year, Lambert Motors issued the three notes described below. Interest is paid at year-end. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) A. The company issued a two-year, 12%, $660,000 note in exchange for a tract of land. The current market rate of interest is 12%. B. Lambert acquired some office equipment with a fair value of $123,036 by issuing a one-year, $130,000 note. The stated interest on the note is 6%. C. The company purchased a building by issuing a four-year installment note. The note is to be repaid in equal installments of $1 million per year beginning one year hence. The current market rate of interest is 8%. Required: Prepare the journal entries to record each of the three transactions and the interest expense at the end of the first year for each. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in whole dollar.) View transaction list Vlew Journal entry worksheet No Event General Journal Debit Credit 1 A Land 660,000 Notes payable 660,000 A Interest expense 79,200 Interest payable 79,200 B Office equipment 123,036 Discount on notes payable 6,964 Notes payable 130,000 4. Interest expense Discount on notes payable Interest payable 7,800 L..... 2. 3.

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Cost of Building 310244569 Statement showing Cash flows P... View the full answer