Fun Land Corp. issued a 5-year, o interest bearing note with a $1,000,000 face value to Lightning

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Question:

Fun Land Corp. issued a 5-year, o interest bearing note with a $1,000,000 face value to Lightning Inc. for $1,000,000 cash. Fun Land also gave Lightning the right to use a parcel of land for equipment storage for 5 years. Interest rates for notes of this type were 8% at issue.

Required

a. Prepare the journal entries to record the issuance of the note by (1) Fun Land and (2) Lightning.