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On July 1, 2020, Vaughn Inc. made two sales. 1. It sold land having a fair value of $904,290 in exchange for a 4-year zero-interest-bearing

On July 1, 2020, Vaughn Inc. made two sales.

1. It sold land having a fair value of $904,290 in exchange for a 4-year zero-interest-bearing promissory note in the face amount of $1,422,914. The land is carried on Vaughn's books at a cost of $591,300.
2. It rendered services in exchange for a 3%, 8-year promissory note having a face value of $408,830 (interest payable annually).

Vaughn 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 12% interest. Record the two journal entries that should be recorded by Vaughn Inc. for the sales transactions above that took place on July 1, 2020.

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