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Global Wildlife purchased land adjacent to their property on January 2, 20X4 in order to expand the territory over which the animals have to roam.
Global Wildlife purchased land adjacent to their property on January 2, 20X4 in order to expand the territory over which the animals have to roam. They issue a $2,199, 200, 5-year, zero interest bearing note to purchase the land. The note will be paid off in five equal installments, due at the end of each year over the life of the note Interest is 11%. Potential factors: FV of ordinary annuity for n=5 and i=11% is 6.22780; FV of ordinary annuity for n=11 and i=5% is 14 20679, PV of ordinary annuity for n=5 and i=11% is 3 69590, PV of annuity due for n=5 and i=11% is 4.102449. The journal entry to record the purchase would include a 7 O a a debit to land in the amount of $1,804,420 Oba debit to discount on note of $394,779 O c. a debit to land in the amount of $1,625,605 Od a credit to discount on note of $573,595 O e a debit to land in the amount of $2,739 236
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