On August 31, 2020 Alexander Ltd. borrowed $175,000 from a bank by signing a 12-year, 7% note payable. The terms of the note called for blended principal and interest payments of $10,898 every six months on February 28 and August 31.

a) What amount of principal will be paid in 2021?

b) Journalize the entry to accrue interest on December 31, 2021.

c) Prepare a partial balance sheet for December 31, 2021 for any accounts related to this note.