On June 1, 2023, Ivanhoe Corporation approached Silverman Corporation about buying a parcel of undeveloped land. Silverman was asking $265,000 for the land and Ivanhoe saw that there was some flexibility in the asking price. Ivanhoe did not have enough money to make a cash offer to Silverman and proposed to give, in return for the land, a $315,000, five-year promissory note that bears interest at the rate of 5%. The interest is to be paid annually to Silverman on June 1 of each of the next five years. Silverman insisted that the note taken in return become a mortgage note. Silverman accepted the amended offer, and Ivanhoe signed a mortgage note for $315,000 due June 1,2028 . Ivanhoe would have had to pay 10% at its local bank if it were to borrow the cash for the land purchase. Silverman, on the other hand, could borrow the funds at 9%. Both Ivanhoe and Silverman have calendar year ends. 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. (c) Your answer is correct. 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.) (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places e.g. 58,971.) eTextbook and Media List of Accounts Prepare the journal entry for the purchase of the land. (Round answers to 0 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 0 for the amounts. List debit entry before credit entry.) (e) Your answer is correct. Prepare any adjusting entry that is required at the end of the fiscal year and the first payment made on June 1, 2024, assuming no reversing entries are used. (Round answers to 0 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 0 for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Prepare ary adjusting entry that is required at the end of the fiscal year and the first payment made on June 1,2024 , assuming no reversing entries are used. (Round answers to O decimal places, eg. 5,275. Credit account tities are automatically indented when the amount is entered. Do not indent manuaily. If no entry is required select "Mo Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries. Recard journal entries in the order presented in the prablem.] Attempts: 5 of 5 used f1) \. Your answer is incorrect. Assume that Silverman had insisted on abtaining an instalment note from lvanhae instead of a mortgage note. Using (1) factor tables, (2) a financial calculator, or (3) Excel function PMT, calculate the amount of the inatalment payments that wauld be required for a five-year instalment note. [Hint: Refer to Chapter 3 for tips an calculating. Use the same cost af the land to Ivanhee that you determined for the mortgage nate in a previous part of the question. (Round present value foctor colculations to 5 decimal places, e.8. 1.25124 and final answer to 0 decimal places eg. 58.971.) On June 1, 2023, Ivanhoe Corporation approached Silverman Corporation about buying a parcel of undeveloped land. Silverman was asking $265,000 for the land and Ivanhoe saw that there was some flexibility in the asking price. Ivanhoe did not have enough money to make a cash offer to Silverman and proposed to give, in return for the land, a $315,000, five-year promissory note that bears interest at the rate of 5%. The interest is to be paid annually to Silverman on June 1 of each of the next five years. Silverman insisted that the note taken in return become a mortgage note. Silverman accepted the amended offer, and Ivanhoe signed a mortgage note for $315,000 due June 1,2028 . Ivanhoe would have had to pay 10% at its local bank if it were to borrow the cash for the land purchase. Silverman, on the other hand, could borrow the funds at 9%. Both Ivanhoe and Silverman have calendar year ends. 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. (c) Your answer is correct. 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.) (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places e.g. 58,971.) eTextbook and Media List of Accounts Prepare the journal entry for the purchase of the land. (Round answers to 0 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 0 for the amounts. List debit entry before credit entry.) (e) Your answer is correct. Prepare any adjusting entry that is required at the end of the fiscal year and the first payment made on June 1, 2024, assuming no reversing entries are used. (Round answers to 0 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 0 for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Prepare ary adjusting entry that is required at the end of the fiscal year and the first payment made on June 1,2024 , assuming no reversing entries are used. (Round answers to O decimal places, eg. 5,275. Credit account tities are automatically indented when the amount is entered. Do not indent manuaily. If no entry is required select "Mo Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries. Recard journal entries in the order presented in the prablem.] Attempts: 5 of 5 used f1) \. Your answer is incorrect. Assume that Silverman had insisted on abtaining an instalment note from lvanhae instead of a mortgage note. Using (1) factor tables, (2) a financial calculator, or (3) Excel function PMT, calculate the amount of the inatalment payments that wauld be required for a five-year instalment note. [Hint: Refer to Chapter 3 for tips an calculating. Use the same cost af the land to Ivanhee that you determined for the mortgage nate in a previous part of the question. (Round present value foctor colculations to 5 decimal places, e.8. 1.25124 and final answer to 0 decimal places eg. 58.971.)
