Entries for installment Note Transactions On January 1, Year 1. Luzak Company issued a $120,000, five-year, 6% Installment note to McGee Bank. The note requires annual payments of $28,488, 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 $7.200 and principal of $21,288. Year 4 Dec. 31. Paid the annual payment on the note, including $3,134 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 $7,200 and principal of $21,288. For a compound transaction if an amount box does not require an entry, leave it blank Year 1 Dec 31 Paid the annual payment on the note, including 3.1:34 of interest. The remainder of the payment reduced the principal balance on the note for a compound transaction, an amount box does not requirement leave it bank Next > CheckMate Chak My Vine Paid the annual payment on the note, including $3,134 of interest. The remainder of the payment reduced the principal balance on the note, For a compound transaction, it an amount box does not require an entry, leave it blank Year 4, Dec. 31