Buffalo Limited has been experiencing increased customer demand for its specialty food products. To meet this demand, the company has bought additional refrigeration units to hold more inventory. To finance this purchase, Buffalo issued a four-year non-interest-bearing note, with a face value of $760,000. The prevailing interest rate for similar instruments is 8%. The company agreed to repay the note in four equal instalments. Buffalo used the effective interest method to amortize any premium or discount.

Prepare the journal entry at the end of the first year to record the payment and interest. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.)

Account Titles and Explanation	Debit	Credit