please answer Q6

Question 6 (Notes Transactions at Unrealistic Interest Rates: 10 marks) On July 1, 2022, Rosy plc made two sales. 1. It sold land having a fair value of 900,000 in exchange for a 4-year, zero- interest-bearing promissory note in the face amount of 1,416,163. The land is carried on Rosy's books at a cost of 590,000. 2. It rendered services in exchange for a 3%, 8-year promissory note having a face value of 400,000 (interest payable annually). Rosy recently had to pay 8% interest for money that it borrowed from the Bank. The customers in these two transactions have credit ratings that require them to borrow money at 12% interest. Required: (10 marks) Record the two journal entries by Rosy plc for the sales transactions on July 1, 2022. (Present Value Tables are provided below) Present value table 50% 4.5% Present value of 1, Lc. (1)-- Where discount rate number of periods Discount rate 6,0% 70% 8.09 9.096 in) (0) 209 239 3:04 40% 10.9804 0.9756 09709 09615 0956909524 0.9134 0.9346 0.9259 0.9174 1 20.9612 0.9518 09426 09246 09157 0.9070 0.8900 0.8734 0.8573 0.8417 2 309423 0.9286 09151 0.8890 0.8763 0.8638 0.8396 0.8163 0.7938 0.77223 4 0.9238 09060 0.888508548 0.8386 0.8227 0.7921 0.7629 0.7350 0.7084 4 $0.9057 08839 0.8626 0.8219 0.8025 0.7835 0.7473 0.7130 0.6806 0.64995 60.8880 0.8623 0.8375 0.7903 07679 0.7462 0.7050 0.6663 0.6302 0.59636 70.8706 0.8413 0.8131 0.7599 0.7348 0.7107 0.6651 0.6227 0.5835 0.54707 8 0.8535 0.8207 0.7394 0.7307 0.7032 0.6768 0,6274 0.5820 0.5403 0.5019 8 90.8368 08007 0.7664 0.7026 0.6729 0.6446 0.5919 0.5439 0.002 0.46049 10 0.8203 0.7812 0.7441 0.6756 0.6439 0.6139 0.5584 0.5083 0.4632 0.4224 10 110.8043 0.7621 0.7224 0.5496 0.6162 0.3847 0.5268 0.4751 0.4259 0.3875 11 12 0.7685 0.7436 0.7014 0.6246 0.5897 0.5568 0.4970 0.4440 0.3971 0.3555 12 13 0.7730 0.7254 0.6810 0.6006 0564305303 0.4688 0.4150 0.3677 0.3262 13 14 0.7599 0.7077 06611 0.5775 0.3400 0.5051 0.4423 0.3878 0.3405 0.2992 14 15 0.7430 0.6905 0.6419 0.3353 05167 0.4810 0.4173 0.3624 0.3152 0.2745 15 16 0.7284 0.6736 0.6232 0.3339 04945 0.4581 0.3936 0.3387 0.2919 0.2519 16 17 0.7142 0.6572 0.6050 0.5134 0.4732 04363 03714 0.3166 0_2703 0.2311 17 18 0.7002 0.6412 0.5874 0.4936 0.4528 0.4155 0.3503 0.2959 0.2502 0.2120 18 19 0.6864 0.6255 0.5703 0.4746 0.4333 0.3957 0.3305 0.2765 0.2317 0.1945 19 20 0.6730 0,6103 05537 0.4564 0.4146 0.3769 0.3118 0.2584 0.2145 0.1754 20 in) 100% 13.046 14.0% 15.0 16.0% 17.0% 18.0% 19.0% (n) 11.09 12.096 10.9091 0.9009 0.8929 0.8850 0.8772 0.8696 0.5621 0.8547 0.8475 0.84031 20.8264 0.8116 0.7972 0.7831 0.7695 0.7561 0.7432 0.7305 0.7182 0.7062 2 30.7513 0.7312 0.7118 0.6931 0.6750 0.6575 0.6407 0.6244 0.6086 0.59343 4 0.6830 0.6587 0.6355 0.6133 0.5921 0.3718 0.5523 0.5337 0.5158 0.49874 30.6209 0.5935 0.5674 0.5428 0.3194 0.4972 0.4761 0.4561 04371 0.41905 6 0.5645 0.5346 0.5066 0.4803 0.4556 0.4323 04104 0.3898 0.3704 035216 7 0.5132 0.4817 0.4523 0.4251 0.3996 0.3759 0.3538 0.3332 0.3139 0.29597 8 0.4665 0.4339 0.4039 0.3762 0.3506 0.3369 0.3050 0.2848 0.2660 0.34878 9 0.4241 0.3909 0.3606 0.3329 0.3075 0.2843 0.2630 0.3434 0.2255 0.2090 9 10 0.3855 0.3522 0.3220 0.2946 0.2697 0.2472 0.2267 0.2080 0.1911 0.1756 10 11 0.3505 0.3173 0.2875 0.2607 0.2366 0.2149 0.1954 0.1778 0.1619 0.1476 11 12 0.3186 0.2858 0.2567 0.2307 0.2076 0.1869 0.1685 0.1920 0.1372 0.1240 12 13 0.2897 0.2575 0.2292 0.2042 0.1821 0.1625 0.1452 0.1299 0.1163 0.1042 13 14 0.2633 0.2320 0.2046 0.1807 0.1997 0.1413 0.1252 0.1110 0.0985 0.0876 14 IS 0.2394 0.2090 0.1827 0.1599 0.1401 0.1229 0.1079 0.0949 0.0035 0.0736 15 160.2176 0.1883 0.1631 0.1415 0.1229 0.1069 0.0930 0.0811 0.0708 0.0618 16 17 0.1978 0.1696 0.1456 0.1252 0.1078 0.0929 0.0002 0.0693 0.060 0,0520 17 18 0.1799 0.1528 0.13000.1108 0.0946 0.0808 0.0691 0.0592 0.0508 0.0437 18 19 0.1635 0.1377 0.1161 0.0981 0.0829 0.0703 0.0596 0.0506 0.0431 0.0367 19 20 0.1486 0.1240 0.1037 0.0868 0.0728 0.0611 0.0514 0.0433 0.0365 0.030820 Present value table Present value of an annuity of 1.1.c. 11-(lt)"} Where discount rate number of periods Discount rate (c) (n) 2.0% 1 2 3 4 5 25% 3.096 4.5% 5.0% 6.09 7.0% 8.06 9.0% 0.9804 09756 0.9709 0.9615 0.9569 0.9524 0.9434 0.9346 0.9259 0.9174 1 1.9416 1.9274 19135 1.8861 1.8727 1.8394 1.8334 1.8080 1.7833 1.75912 2.8839 28560 28286 2.7751 2.7490 2.7232 2.6730 2.6243 2.5771 25313 3 3.8077 3.7620 3.7171 3.6299 3.5875 3.5460 3.4651 3.387233121 3.2397 4 4.7135 4.64584.5797 4.4518 43900 43295 4.2124 4.1002 3.9927 3.88975 6 7 8 9 10 5.6014 5.5081 5417252421 5.1579 5.0757491734.7665 4.6229 4.48596 6.4720 6.3494 6.2303 6.0021 5.8927 5.7864 5.5824 53893 5.2064 5.0330 7 7.3255 7.1701 70197 6.7327 6.59596.4632 6.2098 5.9713 5.7466 5.53488 8.1622 79709 7.7861 7,4353 7.2688 7.1078 6.80176.5152 6.2469 5.99529 8.9826 8.75218.53028.1109 7.9127 7.7217 7.3601 7.0236 6.7101 6.4177 10 9.7868 9.51429.2526 8.7605 8.5289 8.30647.8869 7.4987 7.1390 6.8052 11 12 10.5753 10.2578 9.9540 9.3851 9.1186 8.8633 8.383879427 7.5361 7:1607 12 13 11.3484 10.9832 10.6350 9.9856 9.6829 9.3936 8.8527 8.3577 7.9038 7.4869 13 14 12.1062 11.6909 11.2961 10.5631 10.22289.8986 9.2950 8.7455 8.2442 7.7862 14 15 12.8493 123814 11.9379 11.1184 10.7395 10.3797 9.71229.1079 8.5595 8.0607 15 16 13.5777 13.0550 12 3611 11.6323 11.2340 10.8378 10.1059 94466 8.8514 83126 16 17 14.2919 13.7122 13.1661 12.1657 11.7072 11.2741 10.4773 9.7632 9.1216 8.5436 17 18 14.9920 14.3534 13.7535 12.6593 12 1600 11.6896 10.8276 10.05919.3719 8.7556 18 19 15.6785 149789 14.3238 13.1339 12.5933 12.0853 11.1581 10.3356 9.6036 89501 19 20 16.3514 15.5892 14.8775 13.5903 13.0079 12:4622 11.4699 10.5940 9.8181 9.128520 (n) 10.0% 11.09 12.09 13.0% 14.0% 15.0% 16:09 17,096 18.094 19.0% ( 1 0.9091 0.9009 2 1.7355 1.7125 3 2.4869 2.4437 4 3.1699 3.1024 53.7908 3.6959 0.8929 0.8850 0.8772 0.8695 0.8621 0.8547 0.8475 0.8403 1 1.6901 1.6681 1.6467 1.6257 1.6052 1.5852 15656 1.5465 2 2.4018 236122.3216 2.2832 2.2459 2.2096 2.1743 2.13993 3.0373 2.9745 2.9137 2.8550 2.7982 2.7432 2.6901 2.6386 4 3.6048 3.5172 3.4331 3.3522 3.27433.1993 3.1272 3.0576 5 6 4.3553 4.2305 748684 4.7122 3 5.33.49 3.1461 9 5.7590 5.5370 106.1446 5.8592 4.1114 3.9975 3.8887 3.7845 3.68472 3.5892 3.4976 3.40986 4.5638442264.2883 4.1604 4,0386 3.9224 3.8113 3.70577 4.9676 4.7988 4.6389 4.4873 43436 4.20724.0776 3.95448 5.3282 5.1317 4.9464 4.7716 4.6065 4.4506 4.3030 4.16339 5.6502 542625.21615.0188 4.8332 4.6586 4.4941 4.3389 10 116.4951 6.2065 5.9377 5.6869 5.4527 5.2337 5.0286 4.8364 4.6560 4.4865 11 12 6.8137 6.4924 6.1944 59176 5.6603 5.4206 5.1971 4.9884 4.7932 4.610512 137.1034 6.7499 6,42356.1218 5.8424 5.5831 5.3423 5.1183 4.9095 4.7147 13 14 7.36676.9819 6.6282 6.3025 6.0021 5.7245 5.4675 5.2293 5.0081 4.8023 14 15 7.6061 7.1909 6.8109 6.4624 6.1422 5.8474 5.57555.3242 5.0916 4.8759 15 16 78237 7.3792 6,9740 6.6039 6.2651 5.9542 5.6685 5.4053 3.1624 4.9377 16 17 8.0216 7.5488 7.1196 6.7291 6.37296.04725.7487 54746 5.2223 4.9897 17 18 8.2014 7.7016 7.2497 6.8399 6.4674 6.1280 5.8175 5.5339 5 27325.0333 18 19 8.3649 7.8393 73658 6.9380 6,5504 6.1982 5.8775 5.5845 5.3162 5.070019 20 85136 7.9633 7.4694 7.0248 6,6232 6.2593 5.9288 5.6278 53527 5.1009 20