On July 1, 2020, Novak Inc. made two sales. 1. It sold land having a fair value of $917,040 in exchange for a 4-year zero-interest-bearing promissory note in the face amount of $1,442,976. The land is carried on Novak's books at a cost of $591,800.
2. It rendered services in exchange for a 3%, 8-year promissory note having a face value of $405,360 (interest payable annually).

Novak 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 Novak Inc. for the sales transactions above that took place on July 1, 2020. (