A partial amortization schedule for a note payable with interest paid annually that was issued on January 1, Year 1, is shown next: Accounting Period Principal balance January 1 Cash Payment Applied to Interest Applied to Principal Year 1 $ 404,000 $ 51,000 $ 16,160 $ 34,840 Required: What is the annual rate of interest charged on this loan? Using the horizontal financial statements model, record the appropriate amounts for the following two events: (1) January 1, Year 1, issue of the note payable. (2) December 31, Year 1, payment on the note payable