On July 1, 2012, Rentoul Inc. made two sales.

1.		It sold land having a fair value of $905,000 in exchange for a 3-year zero-interest-bearing promissory note in the face amount of $1,237,708. The land is carried on Rentouls books at a cost of $596,000.
2.		It rendered services in exchange for a 4%, 6-year promissory note having a face value of $409,600 (interest payable annually).

Rentoul 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 11% interest. Record the two journal entries that should be recorded by Rentoul Inc. for the sales transactions above that took place on July 1, 2012. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to 0 decimal places, e.g. $6,538. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Sales And Interest

1. Should have 4 recorded transactions,

2. Should have 3 recorded transaction.