On January 1 of Year 1, Bryson Company obtained a $147,750, four-year, 7% installment note from Campbell Bank. The note requires annual payments of $43,620, beginning on December 31 of Year 1.
a. Prepare a table for this installment note, similar to the one presented in Exhibit 4. Round to the nearest dollar.
b. Journalize the entries for the issuance of the note and the four annual note payments.
c. Describe how the annual note payment would be reported on the Year 1 income statement?