On July 1, 2025, Kingbird Inc. made two sales. 1. 2. Kingbird 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 Kingbird Inc. for the sales transactions above that took place on July 1, 2025. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are tomatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) No. It sold land having a fair value of $917,040 in exchange for a 4-year zero-interest-bearing promissory note in the face amount of $1,442,976. The land is carried on Kingbird's books at a cost of $591,800. It rendered services in exchange for a 3%, 8-year promissory note having a face value of $405,360 (interest payable annually). 1. 2. Date July 1, 2025 July 1, 2025 Account Titles and Explanation Notes Receivable Land Discount on Notes Receivable Gain on Disposal of Land Notes Receivable Service Revenue Discount on Notes Receivable Debit 1442976 405360 Credit 591800 525936 325240 344950 60409.99

1. It sold land having a fair value of $917,040 in exchange for a 4-year zero-interest-bearing promissory note in the face amount of $1,442,976. The land is carried on Kingbird's books at a cost of $591,800. 2. It rendered services in exchange for a 3\%, 8-year promissory note having a face value of $405,360 (interest payable annually). Kingbird 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 Kingbird Inc. for the sales transactions above that took place on July 1 , 2025. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, eg. 5, 275, If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are chtomatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.)