he following journal entry was made by your predecessor to record the annual payment on a 5%, 10-year installment note. 1. What was the carrying amount (book value) of the installment note before the payment on October 1? PAGE 22 JOURNAL DATEDESCRIPTIONPOST. REF.DEBITCREDIT 1 Oct. 1Interest Expense71095,663.00 2 Notes Payable215606,899.00 3 Cash110702,562.00 Using the information provided, compute the following amounts. 

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2. What portion of next year’s payment will be interest? (Round the amount to the nearest dollar.) 

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1. Think about how interest is calculated. 2. What is the carrying amount of the installment note after the October 1 payment?