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On July 1,2025, Waterway Inc. made two sales. It sold land having a...

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Accounting

On July 1,2025, Waterway Inc. made two sales.
It sold land having a fair value of $913,050 in exchange for a 4-year zero-interest-bearing promissory note in the face amount of $1,436,698. The land is carried on Waterway's books at a cost of $592,800.
It rendered services in exchange for a 3%,8-year promissory note having a face value of $407,700(interest payable annually).
Waterway 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 Waterway Inc. for the sales transactions above that took place on July 1,2025.(Round present value factor calculations to 5 decimal places, e.g.1.25124 and final answers to 0 decimal places, e.g.5,275. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.)
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