At the beginning of the year lambert motors issued the

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At the beginning of the year, Lambert Motors issued the three notes described below. Interest is paid at year end. 1) The company issued a two-year, 12%, 600,000 note in exchange for a tract of land. The current market rate of intrest is 12%. 2) Lambert acquired some office equipment with a fair value of 94,643 by issuing a one-year, 100,000 note. The stated interest on the note is 6%. 3) The company purchased a building by issuingh a three-year installment note. The note is to be reqpaid in equal instalments of $1 million per year beginning one year hence. The current market rate of interest is 12%. Prepare the journal entries to record each of the three transactions and the interest expense at the end of the first year for each.

Reference no: EM13569826

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