On January 1, 2017, MM Co. borrows $310,000 cash from a bank and in return signs an 4% installment note for five annual payments of $69,634 each, with the first payment due one year after the note is signed. (Table B.3) (Use PV factors from table provided.) 1. Prepare the journal entry to record issuance of the note.

2. For the first $69,634 annual payment at December 31, 2017, what amount goes toward interest expense? What amount goes toward principal reduction of the note?

Interest expense = ?
Principal reduction = ?

1. Prepare the journal entry to record issuance of the note View transaction list Journal entry worksheet Record the issuance of the note. Note: Enter debits before credits Date General Journal Debit Credit Jan 01