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On January 1, 2019, Eagle Company borrows $18,000 cash by signing a four-year, 9% installment note. The note requires four equal payments of $5,556, consisting

On January 1, 2019, Eagle Company borrows $18,000 cash by signing a four-year, 9% installment note. The note requires four equal payments of $5,556, consisting of accrued interest and principal on December 31 of each year from 2019 through 2022.

Prepare the journal entries for Eagle to record the note's issuance and the four payments.

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