Halep Inc. borrowed $30,000 from Davis Bank and signed a 4-year note payable stating the interest rate was 4% compounded annually. Halep Inc. will make payments of $8,264.70 at the end of each year. Prepare an amortization table showing the principal and interest in each payment.

Annual Period	Interest Expense	Annual Payment	Principal Payment	Ending Balance
1
2
3
4

PLEASE NOTE: All dollar amounts will be rounded to two decimal places with "$" and commas as needed (i.e. $12,345.67). For the journal entry, you must enter the account names exactly as written below and for accounts having similar accounting treatment (DR or CR), you are to record Balance Sheet accounts first, followed by Income Statement accounts.

Based on the amortization schedule above and using the following accounts,

Principal Payment	Cash	Interest Income
LT Notes Payable	Annual Payment	Interest Expense

provide the journal entry for the first year payment:

DR
DR/CR?
CR