E18 (Note Transactions at Unrealistic Interest Rates) On July 1, 2012, Rentoul Inc. made two sales. 1. It sold land having a fair value of $900,000 in exchange for a 4 year zero interest bearing promissory note in the face amount of $ 1,416,163. The land is carried on Rentouls 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 narrowed from British National Bank. The customers in these two transactions have credit rating that requires them to borrow money at 12% interest. Instructions: Record the two journal entries that should be recorded by Rentoul Inc. for the sales transactions above that took place on July 1, 2012