On July 1, 2020,MartinezInc. made two sales.

1.It sold land having a fair value of $912,330in exchange for a4-year zero-interest-bearing promissory note in the face amount of $1,435,565. The land is carried onMartinez's books at a cost of $597,200.2.It rendered services in exchange for a3%,8-year promissory note having a face value of $401,660(interest payable annually).

MartinezInc. recently had to pay8% 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 at12% interest.

Record the two journal entries that should be recorded byMartinezInc. for the sales transactions above that took place on July 1, 2020.

On July 1, 2020, Martinez Inc. made two sales. 1. It sold land having a fair value of $912,330 in exchange for a 4-year zero-interest-bearing promissory note in the face amount of $1,435,565. The land is carried on Martinez's books at a cost of $597,200. 2. It rendered services in exchange for a 3%, 8year promissory note having a face value of $401,660 (interest payable annually). Martinez 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 Martinez Inc. for the sales transactions above that took place on July 1, 2020. (Round present value factor calculations to 5 decimal places, as. 1.25.124 and nal answers to 0 decimal places, as. 5,275. if no entry is required, select "No E ntry" 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.) No. Date Aooou nt Titles and Explanation Debit Credit 1. July 1, 2020 Notes Receivable 1,435,565 Land l 597,200 Discount on Notes Receivable l 523235 Gain on Disposal of Land ' 315130 2. July 1, 2020 Notes Receivable 401,660 Discount on Notes Receivable Service Revenue l