2. paid the first annual payment on the note. For a compound transaction, if an amount box does not require an entry. leave it blank. On the first day of the fiscal year. Nash Company borrowed $50,000 by giving a six-year, 5% installment note to Buffet Bank. The note requires annual payments of $9.851. with the f rst payment occurring on the last day of the fiscal year. The first payment consists of interest of $2.500 and principal repayment of $7,351. Journalize the entries to record the following: H n./111 2. Issued the installment note for cash on the first day of the fiscal year