Salmon Manufacturing Ltd. had the following transactions in 2019: a. On February 1, acquired land and a building for use as a head office by issuing a non- interest bearing, two-year note for $2 million. An independent appraisal indicated the following values; Land $650,000, Building $1,350,000. An interest rate of 5% would properly reflect the substance and credit risk of the transaction. b. On April 30, completed and paid for the following projects that relate to the land and building: i. ii. iii. iv. Constructed a new paved parking lot and driveway at a cost of $126,000 Installed a sign on top of the building at a cost of $38,000 Landscaped the grounds at a cost of $27.500 Painted the building exterior at a cost of $9,600 c. On May 15, acquired furniture in exchange for 27,000 common shares. The average market value of the shares this year has been around $21 per share in a volatile market. An independent valuator determined the fair value of the furniture to be $435,000. d. On June 30, purchased the net assets of its competitor Bluefin Ltd. for $1,950,000 with the following book values and fair values: Accounts receivable Inventory Equipment Patent Book value $550,000 Fair value 275,000 $550,000 300,000 1,025,000 1,125,000 160.000 P I w following book values and fair values: Accounts receivable Inventory 5 6 Equipment 8 9 11 14 14 2 12 15 17 17 18 270 21 221 Patent Accounts payable Notes payable Book value: Fair value $550,000 $550,000 275,000 300,000 1,025,000 1,125,000 0 160,000 150,000 150,000 200,000 200,000 e. On September 3, paid $19,000 in legal fees in a successful patent defence related to the patent acquired on June 30. Required: Prepare journal entries to record the above transactions for Salmon Manufacturing Ltd. 4 Format BIU GENERAL JOURNAL ACCOUNT TITLES AND DATE EXPLANATION DEBIT CREDIT