Exercise 10-3A (Algo) Financial statement effects of an installment note LO 10-1 Dan Dayle started a business by issuing o $97,000 face-value note to First State Bank on January 1, Year 1 . The note had a 8 percent annual rate of interest and o five-year term. Payments of $24,294 are to be made each December 31 for five years. Required a. What portion of the December 31, Year 1, payment is applied to interest expense and principal? b. What is the principol bolance on January 1 , Year 2 ? c. What portion of the December 31, Year 2, payment is applied to interest expense and principal? Complete this question by entering your answers in the tabs below. What portion of the December 31, Year 1, payment is applied to interest expense and principal? (hlound infermedste caiculations to nearest whole dollse amount. Round your answers to the nearest dollar amount.)