On Feb. 1, 2022, Randy Inc. had three transactions:

1. It sold patents (an intangible asset) in exchange for a 5-year, noninterest-bearing promissory note in the face amount of $900,000. The patents book value is $630,000.

2. It sold land for a 4-year promissory note having a face value of $910,000. Interest at a rate of 4% is payable annually. The land has a book value of $670.00. Randy agreed to accept an installment note from a customer in partial settlement of

3. accounts receivable that were overdue. The note calls for six equal payments of $10,700, including the principal and interest due, on the anniversary of the note.

The customers in the above three transactions have credit ratings that require them to borrow money at 9% interest.

(1) Prepare the journal entries for the three notes receivable transactions of Randy Inc. on Feb. 1, 2022.

(2) Prepare an amortization schedule for the note receivable when Randy sold the land.

Date / Cash collected / Interest Income / Discount Amortized / Note book value