On January 1, Blue Spruce Corp. lent $53,000 to Larkspur, Inc., accepting Larkspur's $70,543, three-year, zero-interest-bearing note. The implied interest is 10%. (a) Prepare Blue's journal entries for the initial transaction, recognition of interest each year assuming use of the effective interest method, and the collection of $70.543 at maturity. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation (To record initial transaction) Debit Credit