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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
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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