Required information Use the following information for the Quick Studies below. (Static) of 2 [The following information applies to the questions displayed below] On January 1, MM Company borrows $340,000 cash from a bank and in return signs an 8% installment note for five annual payments of $85,155 each pped Book QS 10-14 (Static) Issuance and interest for installment note LO C1 1. Prepare the journal entry to record issuance of the note. 2. For the first $85,155 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 Required information Journal entry worksheet 1 Record the issuance of the note. Note: Enter debits before credits. Date January 01 General Journal Debit Credit Record entry Clear entry View general journal Use the following information for the Quick Studies below. (Static) [The following information applies to the questions displayed below] On January 1, MM Company borrows $340,000 cash from a bank and in return signs an 8% installment note for five annual payments of $85155 each QS 10-14 (Static) Issuance and interest for installment note LO C1 1. Prepare the journal entry to record issuance of the note. 2. For the first $85155 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 For the first $85,155 annual payment at December 31, what amount goes toward interest expense? What amount goes toward principal reduction of the note? Interest expense Principal reduction