Prepare ivanhoe journal entry for first instalment payment

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Reference no: EM132551821

Ivanhoe Ltd. issued an instalment note on January 1,2020 ( with a required yield of 12%) in exchange for land that it purchased from Safayeni Ltd. Safayeni' s real estate agent had listed the land on the market for $127000. The note calls for 3 equal blended payments of $48713 that are to be made at December 31,2020,2021 and 2020.

Question a) prepare an effective interest amortization table for the instalment note for the 3 year period.

Question b) prepare Ivanhoe's journal entry for the purchase of the land on January 1,2020.

Question c) prepare Ivanhoe's journal entry for the first instalment payment on the note on December 31,2020

Reference no: EM132551821

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