Entries for installment note transactions OBJ. 4 On January 1, 2016, Hebron Company issued a $175,000, five-year, 8% installment note to Ventsam Bank. The note requires annual payments of $43,380, beginning on December 31, 2016. Journalize the entries to record the following:

2016 Jan. 1. Issued the note for cash at its face amount.

Dec. 31. Paid the annual payment on the note, which consisted of interest of $14,000 and principal of $29,830.

2019 Dec. 31. Paid the annual payment on the note, included $6,253 of interest. The remainder of the payment reduced the principal balance on the note.