on July 1, 2010, Rentoul Inc made two sales
1. It sold land haveing a fair market value of $900,000 in exchange for a 4-year non-interest-bearing promissory note in the face amount of $1,416,163. The land is carried on Rentoul's books at a cost of $590,000.
2. It rendered services in exchange for a 3% 8-year promissory note having a face value of $400,000 ( Interest payable annually)
Rentoul Inc. recently had to pay 8% interest for money that it borrowed from British national bank. The customers in these two transactions have credit ratings that require them to borrow money at 12% interest.
Record the two journal entries that should be recorded by Rentoul inc. for the sales transactions above that took place on July 1, 2010.