Entries for installment Note Transactions On January 1, Year 1, Luzak Company issued a $52,000, 4-year, 11% installment note to McGee Bank. The note requires annual payments of $16,761, beginning on December 31, Year 1. Journalize the entries to record the following: Year 1 Jan. 1 Issued the note for cash at its face amount. Dec 31 Paid the annual payment on the note, which consisted of interest of $5,720 and principal of $11,041. Year 4 Dec. 31 Paid the annual payment on the note, including $1,661 of interest. The remainder of the payment reduced the principal balance on the note. Issued the note for cash at its face amount. Year 1, Jan. 1 Paid the annual payment on the note, which consisted of interest of $5,720 and principal of $11,041. For a compound transaction, it an amount box does not require an entry, leave it blank Year 1, Dec. 31