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Question - On July 1, 2020, Skysong Inc. made two sales.
1. It sold land having a fair value of $910,080 in exchange for a 4-year zero-interest-bearing promissory note in the face amount of $1,432,024. The land is carried on Skysong's books at a cost of $591,300.2.It rendered services in exchange for a 3%, 8-year promissory note having a face value of $402,980 (interest payable annually).
2. Skysong 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.
Required - Record the two journal entries that should be recorded by Skysong Inc. for the sales transactions above that took place on July 1, 2020.
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