On the first day of the fiscal year, a company issues $65,000, 10%, six-year installment notes that

Question:

On the first day of the fiscal year, a company issues $65,000, 10%, six-year installment notes that have annual payments of $14,924. The first note payment consists of $6,500 of interest and $8,424 of principal repayment.
(a) Journalize the entry to record the issuance of the installment notes.
(b) Journalize the first annual note payment.