Groover Industries issued a 4-year, $90,000, zero-interest-bearing note to McCrery Motors on January 1, 2017 in exchange for a delivery truck. Groovers incremental borrowing rate of interest is 10%. McCrerys incremental borrowing rate of interest is 8%.

Prepare Groovers journal entries for

(a) the January 1 issuance of the note and

(b) the December 31 recognition of interest.