Exercise 7-13

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

1.		It sold land having a fair value of $904,620 in exchange for a 3-year zero-interest-bearing promissory note in the face amount of $1,237,189. The land is carried on Whispering's books at a cost of $595,300.
2.		It rendered services in exchange for a 5%, 6-year promissory note having a face value of $408,340 (interest payable annually).

Whispering Inc. recently had to pay 9% 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 11% interest. Record the two journal entries that should be recorded by Whispering 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.)