On January 1, 2014, Guiado Company issued a $45,000, 4-year, 8% installment note to Best Bank. The note requires annual payments of $13,586, beginning on December 31, 2014.

Journalize the entries to record the following.

2014
Jan. 1	Issued the notes for cash at their face amount.
Dec. 31	Paid the annual payment on the note, which consisted of interest of $3,600 and principal of $9,986.
2017
Dec. 31	Paid the annual payment on the note, which consisted of interest of $1,006 and principal of $12,580. 1. Issued the notes for cash at their face amount. 2. Paid the annual payment on the note, which consisted of interest of $3,600 and principal of $9,986. For a compound transaction, if an amount box does not require an entry, leave it blank. 3. Paid the annual payment on the note, which consisted of interest of $1,006 and principal of $12,580. For a compound transaction, if an amount box does not require an entry, leave it blank.