McCormick Corporation issued a 4-year, $71,000, 5% note to Greenbush Company on January 1, 2011, and received a computer that normally sells for $55,904. The note requires annual interest payments each December 31. The market rate of interest for a note of similar risk is 12%. Prepare McCormick's journal entries for (a) the January 1 issuance and (b) the December 31 interest.