Problem 14-10 (Algo) Notes exchanged for assets; unknown effective rate [LO14-3] 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.) 1. The company issued a two-year, 10%,$750,000 note in exchange for a tract of land. The current market rate of interest is 10%. 2. Lambert acquired some office equipment with a fair value of $167,045 by issuing a one-year, $175,000 note. The stated interest on the note is 5%. The current market rate of interest is 10%. 3. 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 10%. 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 dollars.) Journal entry worksheet Record the purchase of land in Situation 1. Note: Enter debits before credits. Journal entry worksheet Record the interest expense at year end for Situation 1. Note: Enter debits before credits. Journal entry worksheet Record the purchase of office equipment in Situation 2. Note: Enter debits before credits. Journal entry worksheet Record the interest expense at year end for Situation 2. Note: Enter debits before credits. Journal entry worksheet Record the purchase of the building in Situation 3. Note: Enter debits before credits. Journal entry worksheet Record the interest expense at year end for Situation 3. Note: Enter debits before credits