Problem
On July 1, 2017, Stellar Inc. made two sales.
1. It sold land having a fair value of $917,040 in exchange for a 3-year zero-interest-bearing promissory note in the face amount of $1,288,376. The land is carried on Stellar's books at a cost of $591,800.
2. It rendered services in exchange for a 5%, 6-year promissory note having a face value of $405,360 (interest payable annually).
Stellar 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 Stellar Inc. for the sales transactions above that took place on July 1, 2017