On July 1, 2025, Blue Inc. made two sales. It sold land having a fair value of $912,330 in exchange for a 4-year zero-interest-bearing promissory note in the face amount of $1,435,565. The land is carried on Blue's books at a cost of $597,200. It rendered services in exchange for a 3%, 8-year promissory note having a face value of $401.660 (interest payable annually). 1 2. Blue 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 Blue Inc. for the sales transactions above that took place on July 1, 2025.
On July 1, 2025, Blue Inc. made two sales. It sold land having a fair value of $912,330 in exchange for a 4-year zero-interest-bearing promissory note in the face amount of $1,435,565. The land is carried on Blue's books at a cost of $597,200. It rendered services in exchange for a 3%, 8-year promissory note having a face value of $401.660 (interest payable annually). 1 2. Blue 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 Blue Inc. for the sales transactions above that took place on July 1, 2025.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On July 1, 2025, Blue Inc. made two sales.
It sold land having a fair value of $912,330 in exchange for a 4-year zero-interest-bearing promissory note in the face amount
of $1,435,565. The land is carried on Blue's books at a cost of $597,200.
it rendered services in exchange for a 3%, 8-year promissory note having a face value of $401.660 (interest payable annually).
1
2
Blue 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 Blue Inc. for the sales transactions above that took place on July 1, 2025.
(Round present value foxctor calatotions to 5 decimal places, eg 1.25124 and final answers to 0 decimal ploces, eg 5,275. If no entry is
retuired, select "No Entry for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount
is entered Do not indent roanually. List all debit entries before credit entries.)
No. Date
1.
2
July 1.
2025
July 1.
2025
Account Titles and Explanation
Debit
Credit
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