On the first day of the fiscal year, a company issues $35,000, 12%, five-year installment notes that

Question:

On the first day of the fiscal year, a company issues $35,000, 12%, five-year installment notes that have annual payments of $9,709. The first note payment consists of $4,200 of interest and $5,509 of principal repayment.
(a) Journalize the entry to record the issuance of the installment notes.
(b) Journalize the first annual note payment.