E: [Show all work in detail, step-by -step, with explanations] and only answer if you are absolutely certain, please.

On July 1, 2020, Aspen Inc. made two sales.

1. It sold land having a fair market value of $500,000 in exchange for a 4-year, zero-interest-bearing promissory note in the face amount of $732,053.70. The land is carried on Aspens books at a cost of $375,000.

2. It rendered services in exchange for a 4%, 8-year promissory note having a face value of $400,000 (interest payable annually).

Aspen Inc. recently had to pay 7% interest for money that it borrowed from Roak Bank. The customers in these two transactions have credit ratings that require them to borrow money at 10% interest.

Record the two journal entries that should be recorded by Aspen Inc. for the sales transactions above that took place on July 1, 2020.