Journalizing Installment Notes On the first day of the fiscal year, a company issues $45,000, 8%, seven-year installment notes that have annual payments of $8,643. The first note payment consists of $3,600 of interest and $5,043 of principal repayment. a. Journalize the entry to record the issuance of the installment notes. b. Journalize the first annual note payment. For a compound transaction, if an amount box does not require an entry, leave it blank. Accounts Payable Bonds Payable Cash Interest Expense Interest Payable Interest Receivable