On December 31, 2015, Headland Co. performed environmental consulting services for Hayden Co. Hayden was short of cash, and Headland Co. agreed to accept a $150,000 zero-interest-bearing note due December 31, 2017, as payment in full. Hayden is somewhat of a credit risk and typically borrows funds at a rate of 11%. Headland is much more creditworthy and has various lines of credit at 6%.

(a)

Prepare the journal entry to record the transaction of December 31, 2015, for Headland Co. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to 2 decimal places, e.g. 5,275.25. 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 the amount is entered. Do not indent manually.)