Indigo Corporation purchased a computer on December 31, 2016, for $140,700, paying $40,200 down and agreeing to pay the balance in five equal installments of $20,100 payable each December 31 beginning in 2017. An assumed interest rate of 9% is implicit in the purchase price.
Prepare the journal entry at December 31, 2017, to record the payment and interest (effective-interest method employed).