15 -1(b). Journal Entries. On January * 2 points 1, 2021, IRCS Company obtained an $88,000, seven year 5% installment note from Farmers Bank. The note requires annual payments of $15,208, with the first payment occurring on the last day of the year. The first payment consists of $4,400 interest and principal repayment of $10,808. b. Paid the first annual payment on the note. Debit Interest Expenses $4,400; Debit Notes Payable \$10,808; Credit Cash $15,208 Debit Interest Expenses $4,400; Debit Accounts Payable $10,808; Credit Cash $15,208 Debit Interest Expenses $4,400; Credit Cash $4,400