On July 1, 2020, Skysong Inc. made two sales: 1. It sold excess land in exchange for a four-year, non-interest-bearing promissory note in the face amount of $1,147,860. The land's carrying value is $620,000. 2. It rendered services in exchange for an eight-year promissory note having a face value of $500,000. Interest at a rate of 3% is payable annually. The customers in the above transactions have credit ratings that require them to borrow money at 10% interest. Skysong recently had to pay 7% interest for money it borrowed from British Bank. 3. On July 1, 2020, Skysong also agreed to accept an instalment note from one of its customers in partial settlement of accounts receivable that were overdue. The note calls for four equal payments of $20,300, including the principal and interest due, on the anniversary of the note. The implied interest rate on this note is 9%. The tables in this problem are to be used as a reference for this problem. (a) Your answer is partially correct. Try again. Prepare the journal entries to record the three notes receivable transactions of Skysong Inc. on July 1, 2020. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round answers to 0 decimal places, e.g. 58,971. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) No. Account Titles and Explanation Debit Credit 1.Notes Receivable 784000 Land 620000 I Gain on Disposal of Lan 164000 2. Notes Receivable 419978 T Service Revenue 419978 Notes Receivable 67236 I Accounts Receivable 67236 TABLE PV.1 Present Value of 1 (n.) periods 2% 24% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 15% 1 0.98039 0.96117 0.94232 0.92385 0.97561 0.97087 0.96156 0.95181 0.94260 0.92456 0.92860 0.91514 0.88900 0.90595 0.88849 0.85480 0.95238 0.90703 0.86384 0.82270 0.94340 0.89000 0.83962 0.79209 0.93458 0.87344 0.81630 0.76290 0.92593 0.91743 0.85734 0.84168 0.79383 0.77218 0.73503 0.70843 0.90909 0.90090 0.82645 0.81162 0.75132 0.73119 0.68301 0.65873 0.89286 0.79719 0.71178 0.63552 0.86957 0.75614 0.65752 0.57175 0.90583 0.88385 0.86261 0.82193 0.78353 0.74726 0.71299 0.68058 0.64993 0.62092 0.59345 0.56743 0.49718 0.88797 0.86230 0.83748 0.79031 0.74622 0.70496 0.66634 0.87056 0.84127 0.81309 0.75992 0.71068 0.66506 0.62275 0.85349 0.82075 0.78941 0.73069 0.67684 0.62741 0.58201 0.83676 0.80073 0.76642 0.70259 0.64461 0.59190 0.54393 0.82035 0.78120 0.74409 0.67556 0.61391 0.55839 0.50835 0.80426 0.76214 0.72242 0.64958 0.58468 0.52679 0.47509 0.78849 0.74356 0.70138 0.62460 0.55684 0.49697 0.44401 0.77303 0.72542 0.68095 0.60057 0.53032 0.46884 0.41496 0.75788 0.70773 0.66112 0.57748 0.50507 0.44230 0.38782 0.74301 0.69047 0.64186 0.55526 0.481020.41727 0.36245 0.72845 0.67362 0.62317 0.53391 0.45811 0.39365 0.33873 0.63017 0.59627 0.56447 0.53464 0.50663 0.43233 0.58349 0.54703 0.51316 0.48166 0.45235 0.37594 0.54027 0.50187 0.46651 0.43393 0.40388 0.32690 0.50025 0.46043 0.42410 0.39092 0.36061 0.28426 0.46319 0.42241 0.38554 0.35218 0.32197 0.24719 0.42888 0.38753 0.35049 0.31728 0.28748 0.21494 0.39711 0.35554 0.31863 0.28584 0.25668 0.18691 0.36770 0.32618 0.28966 0.25751 0.22917 0.16253 0.34046 0.29925 0.26333 0.23199 0.20462 0.14133 0.31524 0.27454 0.23939 0.20900 0.18270 0.12289 0.29189 0.25187 0.21763 0.18829 0.16312 0.10687 15 16 TABLE PV.2 Present Value of an Annuity of 1 PV = 1 (n) Periods 2% 24% 0.98039 0.97561 1.94156 1.92742 2.88388 2.85602 3.807733.76197 4.71346 4.64583 3% 0.97087 1.91347 2.82861 3.71710 4.57971 4% 5% 0.96154 0.95238 1.88609 1.85941 2.775092.72325 3.62990 3.54595 4.45182 4.32948 6% 0.94340 1.83339 2.67301 3.46511 4.21236 7% 8% 0.93458 0.92593 1.80802 1.78326 2.62432 2.57710 3.38721 3.31213 4.10020 3.99271 9% 0.91743 1.75911 2.53130 3.23972 3.88965 10% 0.90909 1.73554 2.48685 3.16986 3.79079 11% 12% 0.90090 0.89286 1.71252 1.69005 2.44371 2.40183 3.10245 3.03735 3.69590 3.60478 15% 0.86957 1.62571 2.28323 2.85498 3.35216 5,60143 5.508135.41719 5.24214 5.075694.91732 4.76654 4.62288 4.48592 4.35526 4.86842 5.33493 5.75902 6.14457 4.23054 4.71220 5.14612 5.53705 5.88923 4.11141 4.56376 4.96764 5.32825 5.65022 3.78448 4.16042 4.48732 4.77158 5.01877 6.47199 7.32548 8.16224 8.98259 9.78685 10.57534 11.34837 12.10625 6.349396.23028 7.17014 7.01969 7.97087 7.78611 8.75206 8.53020 9.51421 9.25262 10.25776 9.95400 10.98319 10.63496 11.69091 11.29607 6.00205 6.73274 7.43533 8.11090 8.76048 9.38507 9.98565 10.56312 5.78637 6.46321 7.10782 7.72173 8.30641 8.86325 9.39357 9.89864 5.58238 6.20979 6.80169 7.36009 7.88687 8.38384 8.85268 9.29498 5.38929 5.20637 5.97130 5.74664 6.51523 6.24689 7.02358 6.71008 7.49867 7.13896 7.942697.53608 8.35765 7.90378 8.74547 8.24424 5.03295 5.53482 5.99525 6.41766 6.80519 7.16073 7.48690 7.78615 12 13 14 6.49506 6.20652 5.93770 5.23371 6.81369 6.49236 6.19437 5.42062 7.10336 6.74987 6.42355 5.58315 7.36669 6.98187 6.62817 5.72448 On July 1, 2020, Skysong Inc. made two sales: 1. It sold excess land in exchange for a four-year, non-interest-bearing promissory note in the face amount of $1,147,860. The land's carrying value is $620,000. 2. It rendered services in exchange for an eight-year promissory note having a face value of $500,000. Interest at a rate of 3% is payable annually. The customers in the above transactions have credit ratings that require them to borrow money at 10% interest. Skysong recently had to pay 7% interest for money it borrowed from British Bank. 3. On July 1, 2020, Skysong also agreed to accept an instalment note from one of its customers in partial settlement of accounts receivable that were overdue. The note calls for four equal payments of $20,300, including the principal and interest due, on the anniversary of the note. The implied interest rate on this note is 9%. The tables in this problem are to be used as a reference for this problem. (a) Your answer is partially correct. Try again. Prepare the journal entries to record the three notes receivable transactions of Skysong Inc. on July 1, 2020. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round answers to 0 decimal places, e.g. 58,971. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) No. Account Titles and Explanation Debit Credit 1.Notes Receivable 784000 Land 620000 I Gain on Disposal of Lan 164000 2. Notes Receivable 419978 T Service Revenue 419978 Notes Receivable 67236 I Accounts Receivable 67236 TABLE PV.1 Present Value of 1 (n.) periods 2% 24% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 15% 1 0.98039 0.96117 0.94232 0.92385 0.97561 0.97087 0.96156 0.95181 0.94260 0.92456 0.92860 0.91514 0.88900 0.90595 0.88849 0.85480 0.95238 0.90703 0.86384 0.82270 0.94340 0.89000 0.83962 0.79209 0.93458 0.87344 0.81630 0.76290 0.92593 0.91743 0.85734 0.84168 0.79383 0.77218 0.73503 0.70843 0.90909 0.90090 0.82645 0.81162 0.75132 0.73119 0.68301 0.65873 0.89286 0.79719 0.71178 0.63552 0.86957 0.75614 0.65752 0.57175 0.90583 0.88385 0.86261 0.82193 0.78353 0.74726 0.71299 0.68058 0.64993 0.62092 0.59345 0.56743 0.49718 0.88797 0.86230 0.83748 0.79031 0.74622 0.70496 0.66634 0.87056 0.84127 0.81309 0.75992 0.71068 0.66506 0.62275 0.85349 0.82075 0.78941 0.73069 0.67684 0.62741 0.58201 0.83676 0.80073 0.76642 0.70259 0.64461 0.59190 0.54393 0.82035 0.78120 0.74409 0.67556 0.61391 0.55839 0.50835 0.80426 0.76214 0.72242 0.64958 0.58468 0.52679 0.47509 0.78849 0.74356 0.70138 0.62460 0.55684 0.49697 0.44401 0.77303 0.72542 0.68095 0.60057 0.53032 0.46884 0.41496 0.75788 0.70773 0.66112 0.57748 0.50507 0.44230 0.38782 0.74301 0.69047 0.64186 0.55526 0.481020.41727 0.36245 0.72845 0.67362 0.62317 0.53391 0.45811 0.39365 0.33873 0.63017 0.59627 0.56447 0.53464 0.50663 0.43233 0.58349 0.54703 0.51316 0.48166 0.45235 0.37594 0.54027 0.50187 0.46651 0.43393 0.40388 0.32690 0.50025 0.46043 0.42410 0.39092 0.36061 0.28426 0.46319 0.42241 0.38554 0.35218 0.32197 0.24719 0.42888 0.38753 0.35049 0.31728 0.28748 0.21494 0.39711 0.35554 0.31863 0.28584 0.25668 0.18691 0.36770 0.32618 0.28966 0.25751 0.22917 0.16253 0.34046 0.29925 0.26333 0.23199 0.20462 0.14133 0.31524 0.27454 0.23939 0.20900 0.18270 0.12289 0.29189 0.25187 0.21763 0.18829 0.16312 0.10687 15 16 TABLE PV.2 Present Value of an Annuity of 1 PV = 1 (n) Periods 2% 24% 0.98039 0.97561 1.94156 1.92742 2.88388 2.85602 3.807733.76197 4.71346 4.64583 3% 0.97087 1.91347 2.82861 3.71710 4.57971 4% 5% 0.96154 0.95238 1.88609 1.85941 2.775092.72325 3.62990 3.54595 4.45182 4.32948 6% 0.94340 1.83339 2.67301 3.46511 4.21236 7% 8% 0.93458 0.92593 1.80802 1.78326 2.62432 2.57710 3.38721 3.31213 4.10020 3.99271 9% 0.91743 1.75911 2.53130 3.23972 3.88965 10% 0.90909 1.73554 2.48685 3.16986 3.79079 11% 12% 0.90090 0.89286 1.71252 1.69005 2.44371 2.40183 3.10245 3.03735 3.69590 3.60478 15% 0.86957 1.62571 2.28323 2.85498 3.35216 5,60143 5.508135.41719 5.24214 5.075694.91732 4.76654 4.62288 4.48592 4.35526 4.86842 5.33493 5.75902 6.14457 4.23054 4.71220 5.14612 5.53705 5.88923 4.11141 4.56376 4.96764 5.32825 5.65022 3.78448 4.16042 4.48732 4.77158 5.01877 6.47199 7.32548 8.16224 8.98259 9.78685 10.57534 11.34837 12.10625 6.349396.23028 7.17014 7.01969 7.97087 7.78611 8.75206 8.53020 9.51421 9.25262 10.25776 9.95400 10.98319 10.63496 11.69091 11.29607 6.00205 6.73274 7.43533 8.11090 8.76048 9.38507 9.98565 10.56312 5.78637 6.46321 7.10782 7.72173 8.30641 8.86325 9.39357 9.89864 5.58238 6.20979 6.80169 7.36009 7.88687 8.38384 8.85268 9.29498 5.38929 5.20637 5.97130 5.74664 6.51523 6.24689 7.02358 6.71008 7.49867 7.13896 7.942697.53608 8.35765 7.90378 8.74547 8.24424 5.03295 5.53482 5.99525 6.41766 6.80519 7.16073 7.48690 7.78615 12 13 14 6.49506 6.20652 5.93770 5.23371 6.81369 6.49236 6.19437 5.42062 7.10336 6.74987 6.42355 5.58315 7.36669 6.98187 6.62817 5.72448