I am a new accountant for the most amazing dealership. First day on the job they say that the fiscal year ends on may 31st and they use the "half year convention" to depretiate all the assets that they have. They give you the transactions below

Transaction One:

In august 1 2025, they purchased equipment from a nearby dealership signing a 25,000, 5-year-zero-interest bearing note. They will pay off the note in five equal installments due at the end of each of the next five years. at the date of the transaction, the prevailing market rate of interest for obligations of this nature is 5%. freight cots are 100 and installation costs of 1,000 were incurred in completing the transaction. both paid in cash and the equipment has a useful life of 3 years and zero salvage.

Transaction TWO:

In December 1 2025, the dealership purchases several assets. the cash purchase price was 100,000 and included assets below.

book fair

Inventory 100,000 150,000

land 200,000 250,000

buildings 300,000 350,000

total 600,000 750,000

The buildings are depreciated straight line with a useful life of 20 years and no salvage value.

Transaction Three

On june 1, 2026 the dealership exchanged boats plus cash for an empty lot. They extend the use of the land for a new parking lot. The cars combined a book value of 10,000, and the dealership recorded 20,000 of accumulated depreciation against the assets. Their purchasing agent, who has had previous dealings in the market, indicated that the boats had a fiar value of 30,00 at the time of the transaction. In additionan to the boats, they also paud 20,000 cash for the land.

1. for all three transactions, deteming the value at which the dealerships should record their assets. Record all journal entries.

2. The books show the following additional transactions (no journal entries for this part) a) acquisition for another piece of land for specualtive purposes, b) purchase of a one year insurance policy covering plant equipment, c)purchase of the rights for the exclusive use of a process used in the manufacture of snorkeling gear.