On January 1, 2010, Guiado Company obtained a $140,000, 10-year, 11% installment note from Best Bank. The note requires annual payments of $23,772, beginning on December 31, 2010. Journalize the entries to record the following:
2010
Jan. 1 Issued the notes for cash at their face amount.
Dec. 31 Paid the annual payment on the note, which consisted of interest of $15,400 and principal of $8,372.
2019
Dec. 31 Paid the annual payment on the note, which consisted of interest of $2,353 and principal of $21,419.