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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.

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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.) 1. The company issued a two-year, 10%, $800,000 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 $190,909 by issuing a one-year, $200,000 note. The stated interest on the note is 5%. The current market rate of interest is 10% 3. The company purchased a bullding by issuing a five-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.) Answer is not complete. Credit No Transaction General Journal Debit 800,000 A 1a Land Notes payable OO 800,000 80,000 B 1b Interest expense Cash 80,000 20 190,900 9,091 Office equipment Discount on notes payable Notes payable 200,000 Answer is not complete. No Transaction General Journal Debit Credit A 1a Land 800,000 Notes payable 800,000 B 1b Interest expense Cash 80,000 80,000 c 2a Office equipment Discount on notes payable Notes payable 190,909 9,091 200,000 D 2b 19,091 Interest expense Discount on notes payable Cash 10,000 E 3,790,800 Building Notes payable OC 3,790,800 F 3b Interest expense Notes payable Cash 379,100 620,900 100,000

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