On July 1, 2019, Rentoul plc made two sales. 1. It sold land having a fair value

Question:

On July 1, 2019, Rentoul 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 Rentoul's books at a cost of £590,000.
2. It rendered services in exchange for a 3%, 8-year promissory note having a 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 plc for the sales transactions above that took place on July 1, 2019.
Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...