On July 1, 2017, Culver Inc. made two sales.

On July 1, 2017, Culver Inc. made two sales.

1. It sold land having a fair value of $905,820 in exchange for a 3-year zero-interest-bearing promissory note in the face amount of $1,238,830. The land is carried on Calves books at a cost of $599,100.

2. It rendered services in exchange for a 4%, 6-year promissory note having a face value of $409,970 (interest payable annually).

Culver 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 11% interest.

Record the two journal enteries that should be reconded by Culver Inc, for the sales transactions above that took place on July 1, 2017.