I am having trouble figuring out how to calculate the service revenue and discount on notes receivable for the second part!!!

Your answer is partially correct. On July 1, 2020, Larkspur Inc. made two sales. 1. It sold land having a fair value of $906,700 in exchange for a 4-year zero-interest-bearing promissory note in the face amount of $1,426,706. The land is carried on Larkspur's books at a cost of $593,200. 2. It rendered services in exchange for a 3%, 8-year promissory note having a face value of $401,380 interest payable annually). Larkspur 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 Larkspur Inc. for the sales transactions above that took place on July 1, 2020. (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 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, 2020 Notes Receivable 1426706 Land 593200 Gain on Disposal of Land 313500 Discount on Notes Receivable 520006 2. July 1, 2020 Notes Receivable 401380 Discount on Notes Receivable 12041.40 Service Revenue 389338.60