On January $1,2022,$ NorthCo exchanged a three$-$year instalment note for land which was listed on the market at $$145,000.$ Payments will

be made yearly on December $31.$ The implied market interest rate is $8\%.$ Please make sure your final answer$($s$)$ are accurate to the

nearest whole number.

a$)$ Record the journal entry for the purchase of the land. Enter an appropriate description, and enter the date in the

format dd$/$mmm $($ie$.15/$Jan$).$

Marking:

You have not included the 'Land' account in this journal entry. This will cost you $2$ marks.

You have not included the 'Notes payable' account in this journal entry. This will cost you $2$ marks.

The following accounts should not have been included in this journal entry: Notes receivable, Sales. Any amounts entered for these

accounts will not be evaluated.