QS 10-12 Issuance and interest for installment note LO C1 On January 1, MM Co. borrows $280,000 cash from a bank and in return signs an 8% installment note for five annual payments of $70,128 each. 1. Prepare the journal entry to record issuance of the note. 2. For the first $70,128 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. View transaction list Journal entry worksheet Record the issuance of the note. Note: Enter debits before credits. Date General Journal Debit Credit Jan 01 Record entry Clear entry View general lournal For the first $70,128 annual payment at December 31, what amount goes toward interest expense? What amount goes toward principal reduction of the note? Interest expense Principal reduction