On July 1, 2015, Rentoul Inc. 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 Rentoul’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).

Rentoul 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.

Instructions Record the two journal entries that should be recorded by Rentoul Inc. for the sales transactions above that took place on July 1, 2015.