On January 1, 2021, Antonia Lee Stores, Inc., borrowed $700,000 and immediately received the full amount. The note carried a 7% interest rate and requires annual payments of $146,857 beginning on December 31, 2021. The note matures on December 31, 2026. The company’s fiscal year ends on December 31. The payment includes interest and principal.

Required

a. Prepare the journal entry to record the issuance of the note payable.

b. Prepare the amortization table for the note.

c. Prepare the journal entry required to record the first payment on December 31, 2021.

d. What is the balance of the note on December 31, 2025, after the payment?

e. Prepare the journal entry to record the payment of the note at maturity.