Question: 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.

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. 1. The company issued a two-year, 12%,$720,000 note in exchange for a tract of land. The current market rate of interest is 12%. 2. Lambert acquired some office equipment with a fair value of $151,429 by issuing a one-year, $160,000 note. The stated interest on the note is 6%. The current market rate of interest is 12%. 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 12%. 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. Note: If no entry is required for a transaction/event, select "No journol entry required" in the first account field. Do not round intermediote colculations. Enter your onswers in whole dollars. Use tables, Excel, or a financial calculator. (EV of. \$1. PV. of S1, FVA of \$1, PVA of \$1. EVAD of S1 and PVAD of Sil)

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