On January 1, MM Company borrows $270,000 cash from a bank and in return signs an 4% installment note for five annual payments of $60,649 each. 1. Prepare the journal entry to record issuance of the note. 2. For the first $60,649 annual payment at December 31, what amount goes toward interest expense? What amount goes toward principal reduction of the note? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entry to record issuance of the note. Required 1 Required 2 For the first $60,649 annual payment at December 31, what amount goes toward interest expense? What amount goes toward principal reduction of the note? Interest expense Principal reduction