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Indigo Corporation issued a 4-year, $47,000, 5% note to Greenbush Company on January 1, 2017, and...

Indigo Corporation issued a 4-year, $47,000, 5% note to Greenbush Company on January 1, 2017, and received a computer that normally sells for $39,551. The note requires annual interest payments each December 31. The market rate of interest for a note of similar risk is 10%.

Prepare Indigo’s journal entries for (a) the January 1 issuance and (b) the December 31 interest. (Round answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.

Date

Account Titles and Explanation

Debit

Credit
(a)

January 1, 2017

(b)

December 31, 2017

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| Credit 9 No.1 Date Account Titles and Explanation 10 (a) 1-Jan-17 Computer Discount on Notes Payable Notes payable Debit 39

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