On November 1, 2015, Norwood borrows $200,000 cash from a bank by signing a five-year installment note bearing 8% interest. The note requires equal total payments each year on October 31.
1. Compute the total amount of each installment payment.
2. Complete an amortization table for this installment note similar to the one in Exhibit.
3. Prepare the journal entries in which Norwood records
(a) Accrued interest as of December 31, 2015 (the end of its annual reporting period)
(b) The first annual payment on the note.