14.7

Ayayai Corporation issued a 3-year, $69,500, 6% note to Blossom Company on January 1, 2017, and received an excavator that normally sells for $54,231. The note requires annual interest payments each December 31. The market rate of interest for a note of similar risk is 12%. Prepare Ayayai's journal entries for (a) the January 1 issuance and (b) the December 31 interest. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts.) Account Titles and Explanation Debit Credit (a) (b) e Textbook and Media