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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

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.

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

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