On January 1, 2025, Blue Company issued a $1,252,050,5-year, zero-interest-bearing note to Kingbird Bank. The note was issued to yield 9% annual interest. Unfortunately, during 2026 Blue fell into financial trouble due to increased competition. After reviewing all available evidence on December 31,2026 , Kingbird Bank decided that the loan was impaired. Blue will probably pay back only $834.700 of the principal at maturity. (a) Your answer is partially correct. Prepare journal entries for both Blue Company and Kingbird Bank to record the issuance of the note on January 1, 2025. (Round present value factor calculations to 5 decimal places, eg. 1.25124 and final answers to 0 decimal places, e. 5.275, Credit occount titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the occount tities and enter O for the amounts. List all debit entries before credit entries.) Discount on Notes Payable Notes Payable Kingbird Bank (Creditor): Notes Receivable Discount on Notes Receivable Cash