Entries for installment note transactions

On January 1, 2014, O'Brien Company issued a $210,000, six-year, 9% installment note to Bulldog Bank. The note requires annual payments of $46,813, beginning on December 31, 2014. Journalize the entries to record the following:

2014

Jan. 1. Issued the notes for cash at their face amount.

Dec. 31. Paid the annual payment on the note, which consisted of interest of $18,900 and principal $27,913.

2017

Dec. 31. Paid the annual payment on the note, included $10,665 of interest. The remainder of the payment reduced the principal balance on the note.