On January 1, 2015, DigiCom sold inventory costing $75,000 to SunBlush Technologies. In return, DigiCom received a 4-year, 8% note with a face value of $105,000. Blended payments will be made yearly on December 31, and will include principal and interest. The market rate of interest is 4%. DigiCom has a December 31 year-end while SunBlush Technologies' year-end is September 30.

Please make sure your final answer(s) are accurate to the nearest whole number.

The annual payments DigiCom will receive each year from SunBlush Technologies. Use the stated rate of the note in your calculation. a) Annual payment = $ 31, 702.00

b) Complete the following payment and amortization schedule for the note:

	Cash Received	Interest Income (4%)	Principal Reduction	Carrying value of note
Jan 1, 2015	-	-	-
December 31, 2015
December 31, 2016
December 31, 2017
December 31, 2018

Note: The carrying value of the note should be 115,075 on January 1, 2015. Please explain how you obtained this value in detail.

C) Record the journal entries for DigiCom on January 1, 2015 and December 31, 2015. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan).

General Journal
Date	Account/Explanation	PR	Debit	Credit