On July 1, 2017, Novak 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 Novak'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).

Novak 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 Novak Inc. for the sales transactions above that took place on July 1, 2017