On January 1, 2020, Flint Corporation acquired the following properties: 1. Investment property consisting of land and an apartment building in Toronto for $1.5 million. To finance this transaction, Flint Corporation issued a five-year interest-free promissory note to repay $2.307,941 on January 1, 2025. 2. Vacant land in Rome, Italy for $5 million. To finance this transaction. Flint Corporation obtained a 8% mortgage for the full purchase price, secured by the land, with a maturity date of January 1, 2030. Interest is payable annually. If Flint Corporation borrowed this money from the bank, the company would need to pay 9% interest. Prepare the journal entry for the purchase of the land. (Round answers to decimal places, eg. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit June 1, 2020 Land 243138 Cash 243138 Assume that Silverman had insisted on obtaining an instalment note from Flint instead of a mortgage note. Using (1) factor tables, (2) a financial calculator, or (3) Excel function PMT, calculate the amount of the instalment payments that would be required for a five-year instalment note. (Hint: Refer to Chapter 3 for tips on calculating.) Use the same cost of the land to Flint Corporation that you determined for the mortgage note in a previous part of the question. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answer to O decimal places, eg. 5,275.) Amount of the instalment $ 62509 Assume that Silverman had insisted on obtaining an instalment note from Flint instead of a mortgage note. Prepare an effective interest amortization table for the five-year term of the instalment note. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to decimal places, eg. 5,275. Do not leave any answer field blank. Enter Ofor amounts.) Instalment Note Payable Discount Note Cash Paid Interest Expense Amortized Carrying Amount $ 243138 62509 $ $ 21882 $ 40627 202511 62509 18226 44283 158228 62509 14241 48268 109960 62509 9896 52613 57347 62509 5161 57348 o i $ 69607 $ $ 243138 Prepare the journal entry for the purchase of the land and the issuance of the instalment note. (Round answers to O decimal places, eg. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit June 1, 2020 Land 243138 Notes Payable 243138 Prepare any adjusting journal entry that is required at the end of the fiscal year and the first payment made on June 1, 2021, assuming no reversing entries are used. (Round answers to O decimal places, eg. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and entero for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2020 Interest Expense 12765 Interest Payable 12765 June 1, 2021 Interest Expense 9118 Interest Payable 12765 Notes Payable 40267 Cash 62509 Using (1) factor tables, (2) a financial calculator, or (3) Excel function PV, calculate the purchase price of the land and prepare an effective interest amortization table for the term of the mortgage note payable that is given in the exchange. (Hint: Refer to Chapter 3 for tips on calculating.) (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to decimal places, e.g. 5,275.) Purchase price of the land $ 243138 Mortgage Note Payable - Interest Amortization Note Cash Paid Interest Expense Discount Amortized Carrying Amount $ 243138 15000 $ $ 24314 $ $ 9314 252452 15000 25245 10245 262697 15000 26270 11270 273967 15000 27397 12397 286363 15000 28636 13636 300000 GA 131862 i $ $ 56862 Compare the balances of the two different notes payable and related accounts at December 31, 2020. Be specific about the classifications on the statement of financial position. Mortgage Note Payable Flint Corporation (Partial) Statement of Financial Position December 31, 2020 Non-current Liabilities Notes Payable $ 248571 Current Liabilities Interest Payable 5433 Instalment Note Payable Flint Corporation (Partial) Statement of Financial Position December 31, 2020 Current Liabilities Interest Payable $ 12765 Notes Payable 40627 Non-current Liabilities Notes Payable 202511 On January 1, 2020, Flint Corporation acquired the following properties: 1. Investment property consisting of land and an apartment building in Toronto for $1.5 million. To finance this transaction, Flint Corporation issued a five-year interest-free promissory note to repay $2.307,941 on January 1, 2025. 2. Vacant land in Rome, Italy for $5 million. To finance this transaction. Flint Corporation obtained a 8% mortgage for the full purchase price, secured by the land, with a maturity date of January 1, 2030. Interest is payable annually. If Flint Corporation borrowed this money from the bank, the company would need to pay 9% interest. Prepare the journal entry for the purchase of the land. (Round answers to decimal places, eg. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit June 1, 2020 Land 243138 Cash 243138 Assume that Silverman had insisted on obtaining an instalment note from Flint instead of a mortgage note. Using (1) factor tables, (2) a financial calculator, or (3) Excel function PMT, calculate the amount of the instalment payments that would be required for a five-year instalment note. (Hint: Refer to Chapter 3 for tips on calculating.) Use the same cost of the land to Flint Corporation that you determined for the mortgage note in a previous part of the question. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answer to O decimal places, eg. 5,275.) Amount of the instalment $ 62509 Assume that Silverman had insisted on obtaining an instalment note from Flint instead of a mortgage note. Prepare an effective interest amortization table for the five-year term of the instalment note. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to decimal places, eg. 5,275. Do not leave any answer field blank. Enter Ofor amounts.) Instalment Note Payable Discount Note Cash Paid Interest Expense Amortized Carrying Amount $ 243138 62509 $ $ 21882 $ 40627 202511 62509 18226 44283 158228 62509 14241 48268 109960 62509 9896 52613 57347 62509 5161 57348 o i $ 69607 $ $ 243138 Prepare the journal entry for the purchase of the land and the issuance of the instalment note. (Round answers to O decimal places, eg. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit June 1, 2020 Land 243138 Notes Payable 243138 Prepare any adjusting journal entry that is required at the end of the fiscal year and the first payment made on June 1, 2021, assuming no reversing entries are used. (Round answers to O decimal places, eg. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and entero for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2020 Interest Expense 12765 Interest Payable 12765 June 1, 2021 Interest Expense 9118 Interest Payable 12765 Notes Payable 40267 Cash 62509 Using (1) factor tables, (2) a financial calculator, or (3) Excel function PV, calculate the purchase price of the land and prepare an effective interest amortization table for the term of the mortgage note payable that is given in the exchange. (Hint: Refer to Chapter 3 for tips on calculating.) (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to decimal places, e.g. 5,275.) Purchase price of the land $ 243138 Mortgage Note Payable - Interest Amortization Note Cash Paid Interest Expense Discount Amortized Carrying Amount $ 243138 15000 $ $ 24314 $ $ 9314 252452 15000 25245 10245 262697 15000 26270 11270 273967 15000 27397 12397 286363 15000 28636 13636 300000 GA 131862 i $ $ 56862 Compare the balances of the two different notes payable and related accounts at December 31, 2020. Be specific about the classifications on the statement of financial position. Mortgage Note Payable Flint Corporation (Partial) Statement of Financial Position December 31, 2020 Non-current Liabilities Notes Payable $ 248571 Current Liabilities Interest Payable 5433 Instalment Note Payable Flint Corporation (Partial) Statement of Financial Position December 31, 2020 Current Liabilities Interest Payable $ 12765 Notes Payable 40627 Non-current Liabilities Notes Payable 202511