Question 1 [24 points] On January 1 of the calendar year, South Co issued the three notes described below. 1. The company acquired some equipment with a fair market value of $270,360 by issuing a two-year, $300,000 note. The stated interest on the note is 8% and is payable on December 31. The current market rate of interest is 14%. 2. The company issued a three-year, 11%, $1,300,000 note in exchange for a tract of land. The current market rate of interest is 11%. Interest is payable each December 31. 3. The company purchased a building by issuing a four-year instalment note. The note is to be repaid in equal instalments of $1,800,000 per year each December 31. The current market rate of interest is 16%. Prepare the journal entries to record each of the three transactions and the interest expense at the end of the first year for each. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan). Please make sure your final answer(s) are accurate to the nearest whole number. Date General Journal Account/Explanation Page G4 PR Debit Credit 1/Jan Equipment. 270,360 Cash. 270,360 31/Dec