On January 1, 2020, Grouper 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, Grouper Corporation issued a five-year interest-free promissory note to repay $2,307,941 on January 1, 2025. Vacant land in Rome, Italy for $2 million. To finance this transaction, Grouper 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 Grouper Corporation borrowed this money from the bank, the company would need to pay 9% interest. 2. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1 ! - Your answer is partially correct. Using (1) factor tables, (2) a financial calculator, or (3) Excel function PV, calculate the value of the mortgage. Using the calculation from the tables, record Grouper Corporation's journal entries on January 1, 2020, for each of the purchases. (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 answer 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 Jan. 1, 2020 Investment Property 1500000 Notes Payable 1500000 (To record purchase of land and building) Jan. 1, 2020 Land 2646646 Mortgage Payable 2646646 (To record purchase of land) e Textbook and Media List of Accounts ! - Your answer is partially correct. . Record the interest at the end of the first year on both instruments using the effective interest method. (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.) ) Account Titles and Explanation Debit Credit Interest Expense 135000 Notes Payable 135000 (To record interest on five-year note) Interest Expense Morteade Pavable V Cash (To record interest on ten-year mortgage) On January 1, 2020, Teal Mountain Inc. sold 14% bonds having a maturity value of $ 840,000 for $ 900,563, which provides the bondholders with a 12% yield. The bonds are dated January 1, 2020, and mature on January 1, 2025, with interest payable on January 1 of each year. The company follows IFRS and uses the effective interest method. Prepare the journal entries to record the interest payment and the amortization for 2022. (Round answers to decimal places, e.g. 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 O for the amounts.) Debit Credit Date Account Titles and Explanation Dec. 31, 2022 Jan. 1, 2023