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On July 1, 2017, Sandhill Inc. made two sales. 1. It sold land having a fair value of $906,700 in exchange for a4-year zero-interest-bearing promissory

On July 1, 2017, Sandhill Inc. made two sales.

1.It sold land having a fair value of $906,700 in exchange for a4-year zero-interest-bearing promissory note in the face amount of $1,376,436. The land is carried on Sandhill books at a cost of $593,200.
2.

It rendered services in exchange for a4%,8-year promissory note having a face value of $401,380 (interest payable annually).

Sandhill Inc. recently had to pay9% 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 at11% interest. Record the two journal entries that should be recorded by Sandhill Inc. for the sales transactions above that took place on July 1, 2017.(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 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)image text in transcribed

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