On January $1,2026,$ Norwood borrows $$570,000$ cash from a

bank by signing a five$-$year installment note bearing $6\%$ interest.

The note requires equal payments of $$135,315$ each year on December $31.$

Prepare journal entries to record the note$$s issuance and each of

the first two payments.

$1.$ Norwood borrows $$570,000$ cash by signing a five$-$year, $6\%$ installment note.

$2.$ Record the first installment payment on December $31,2026.$

$3.$ Record the second installment payment on December $31,2027.$