Exercise 7-13

On July 1, 2017, Cheyenne Inc. made two sales.

1.	It sold land having a fair value of $907,040 in exchange for a3-year zero-interest-bearing promissory note in the face amount of $1,240,498. The land is carried on Cheyenne's books at a cost of $596,000.
2.	It rendered services in exchange for a4%,6-year promissory note having a face value of $406,680 (interest payable annually).

Cheyenne Inc. recently had to pay9% 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 at11% interest.

Record the two journal entries that should be recorded by Cheyenne Inc. for the sales transactions above that took place on July 1, 2017.(Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

No.	Date	Account Titles and Explanation	Debit	Credit
1.	July 1, 2017
2.	July 1, 2017