Entries for Installment Note Transactions On the first day of the fiscal year, Hammond Company borrowed $19,000 by giving a six-year, 11% installment note to Vegas Bank. The note requires annual payments of $4,565, with the first payment occurring on the last day of the fiscal year. The first payment consists of interest of $2,090 and principal repayment of $2,475. Journalize the entries to record the following: 1. Issued the installment note for cash on the first day of the fiscal year. 2. Paid the first annual payment on the note. For a compound transaction, if an amount box does not require an entry, leave it blank.