On January $1,2023,$ Blue Spruce Corporation acquired the following properties:

Investment property consisting of land and an apartment building in Toronto for $$1\mathrm{.}50mm.$ Ton. To finance this transaction,

Blue Spruce issued a five$-$year interest$-$free promissory note to repay $$2,307,941$ on January $1,2028.$

Vacant land in Rome, Italy, for $$2\mathrm{.}2$ million. To finance this transaction, Blue Spruce obtained a $7\%$ mortgage for the full

purchase price, secured by the land, with a maturity date of January $1,2033.$ Interest is payable annually. If Blue Spruce

borrawed this money from the bank, the company wauld need to pay $9\%$ interest.

factor table PRESENT YALUE OF $1.$

table PRESENT VALUE OF AN ANNUITY OF $1.$

$($a$)$

Usine $(1)$ factor tables, $(2)$ a financial calculator, or $(3)$ Excel function PV$,$ calculate the value of the morteage. Usine the calculation

from the tables, record Blue Spruce's joumal entries on January $1,2023,$ for each of the purchases. $($Hint: Refer to Chapter $3$ for

tips on calculating.$]($Round present value factor calculations to $5$ decimal places, e$.$g $1\mathrm{.}25124$ and final answer to $0$ decimal places e$.$g

$58,971.$ Credit account titles are automatically indented when the omount is entered. Do not indent manually. If no entry is required, select

$"$No Entry" for the account titles ond enter O for the amounts. List all debit entries before credit entries.$)$

Date Account Titles and Explanation

Debit

Credit

Jan.

$1_r$

$2023$

$($To record purchase of land and bulding$)$

Jan.

$1_r$

$2023$

$($To record purchase of land$)$