Waterway Corporation issued a 4-year, $30,000, 4% note to Greenbush Company on January 1, 2017, and received a computer that normally sells for $24,294. The note requires annual interest payments each December 31. The market rate of interest for a note of similar risk is 10%. Prepare Waterways journal entries for (a) the January 1 issuance and (b) the December 31 interest.

List of accounts:

Accumulated Depreciation-Equipment Accumulated Depreciation-Machinery Allowance for Doubtful Accounts Bad Debt Expense Bond Issue Expense Bonds Payable Buildings Cash Common Stock Debt Investments Depreciation Expense Discount on Bonds Payable Discount on Notes Payable Discount on Notes Receivable Equipment Equity Investments Gain on Disposal of Machinery Gain on Disposal of Land Gain on Disposal of Plant Assets Gain on Redemption of Bonds Gain on Restructuring of Debt Gain on Sale of Machinery Interest Expense Interest Payable Interest Receivable Interest Revenue Land Loss on Disposal of Land Loss on Redemption of Bonds Machinery Mortgage Payable No Entry Notes Payable Notes Receivable Paid-in Capital in Excess of Par - Common Stock Paid-in Capital in Excess of Par - Preferred Stock Premium on Bonds Payable Sales Revenue Unamortized Bond Issue Costs Unearned Revenue Unearned Sales Revenue Unrealized Holding Gain or Loss - Income

Waterway Corporation issued a 4-year, $30,000, 4% note to Greenbush Company on January 1, 2017, and received a computer that normally sells for $24,294. The note requires annual interest payments each December 31. The market rate of interest for a note of similar risk is 10%. Prepare Waterway's journal entries for (a) the January 1 issuance and (b) the December 31 interest. (Round answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit (a) January 1, 2017 (b) December 31, 2017