On July 1, 2025, Sunland Inc. made 2 sales:

1. It sold land having a fair value of $904,620 in exchange for a 4-year zero-interest-bearing promissory note in the face amount of $1,423,433. The land is carried on Sunland's books at a cost of $595.300.

2. It rendered services in exchange for a 3%, 8-year promissory note having a face value of $408,340 (interest payable annually).

Sunland Inc. recently had to pay 8% interest for money 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 journal entries that should be recorded by Sunland Inc. for the sales transactions above that took place on July 1,2025.

No. Date Account Titles and Explanation Debit Credit 1. July 1 , 2025 2. July 1, 2025