EA& Y, Inc. borrowed $ 350,000 on January 1, 2015, with a 6% interest rate. It will make a payment of $ 101,007 annually ( beginning December 31, 2015) until the note is paid off on December 31, 2018. The company’s fiscal year ends on December 31. The payment includes interest and principal.
Required
a. Prepare the journal entry to record the issuance of the note payable.
b. Prepare the amortization table for the note.
c. What is the journal entry at December 31, 2015?