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On July 1 , 2 0 2 3 , Tamarisk Inc. made two sales: 1 . It sold excess land in exchange for a four

On July 1,2023, Tamarisk Inc. made two sales:
1. It sold excess land in exchange for a four-year, noninterest-bearing promissory note in the
face amount of $1,244,650. The lands carrying value is $610,000.
2. It rendered services in exchange for an eight-year promissory note having a face value of
$460,000. Interest at a rate of 4% is payable annually.
The customers in the above transactions have credit ratings that require them to borrow money at
12% interest.
Tamarisk recently had to pay 8% interest for money it borrowed from British Bank.
3. On July 1,2023, Tamarisk also agreed to accept an installment note from one of its
customers in partial settlement of accounts receivable that were overdue. The note calls
for four equal payments of $20,700, including the principal and interest due, on the
anniversary of the note. The implied interest rate on this note is 10%.
The tables in this problem are to be used as a reference for this problem.
Click here to view the factor table PRESENT VALUE OF 1.
Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1.
Prepare the journal entries to record the three notes receivable transactions of Tamarisk on
July 1,2023.
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