Sunland Lake Corp. issues a $636,000, 4-year, 3% note payable on March 31, 2021. The terms provide for fixed principal payments annually of $159,000.

Prepare the journal entries to record the note on March 31, 2021, and the first payment on March 31, 2022.

For ACCOUNT Date Account Titles and Explanation Debit Credit Mar. 31, 2021 Cash 636000 636000 Notes Payable (To record issuance of note.) Mar. 31, 2027 Notes Payable Interest Expense Cash (To record payment on note.)