It sold land haveing a fair market value of 900000 in

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Reference no: EM13605208

on July 1, 2010, Rentoul Inc made two sales

1. It sold land haveing a fair market value of $900,000 in exchange for a 4-year non-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.

Record the two journal entries that should be recorded by Rentoul inc. for the sales transactions above that took place on July 1, 2010.

Reference no: EM13605208

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