On January 1, 2021, Strato Corporation borrowed $2 million from a local bank to construct a new building over the next three years. The loan will be paid back in three equal installments of $776,067 on December 31 of each year. The payments include interest at a rate of 8%.

Required:

1. Record the cash received when the note is issued.

2. Prepare an amortization schedule over the three-year life of the installment note. Round answers to the nearest dollar.

3. Use amounts from the amortization schedule to record each installment payment.