eBook Show Me How Journalizing Installment Notes On the first day of the fiscal year, a company issues $47,000, 9%, four-year installment notes that have annual payments of $14,507. The first note payment consists of $4,230 of interest and $10,277 of principal repayment. a. Journalize the entry to record the issuance of the installment notes. If an amount box does not require an entry, leave it blank. Cash fill in the blank 7de29efcafa3058_2 fill in the blank 7de29efcafa3058_3 Notes Payable fill in the blank 7de29efcafa3058_5 fill in the blank 7de29efcafa3058_6 Feedback The cash payment is the same in each year. The interest and principal repayment, however, change each year. This is because the carrying amount (book value) of the note decreases each year as principal is repaid, which decreases the interest. b. Journalize the first annual note payment. If an amount box does not require an entry, leave it blank. Interest Expense fill in the blank 1ab3e5f8700f00e_2 fill in the blank 1ab3e5f8700f00e_3 Notes Payable fill in the blank 1ab3e5f8700f00e_5 fill in the blank 1ab3e5f8700f00e_6 Cash fill in the blank 1ab3e5f8700f00e_8 fill in the blank 1ab3e5f8700f00e_9