On January 1, 2020, the Wish Company purchased land from the Fisher Company in exchange for a $1,000,000 face value noninterest-bearing note payable, due in five equal installments of $200,000, with the first payment due December 31, 2020. The face value of the note includes interest and principal. There was no established interest rate for this note but the prevailing interest rate for similar notes is 12% APR. Present value factors from tables are listed below:

Present value of single sum, 5 periods, 12% 0.56743

Present value of ordinary annuity, 5 periods, 12% 3.60478

Present value of annuity due, 5 periods, 12% 4.03735

Future value of single sum, 5 periods, 12% 1.76234

Future value of ordinary annuity, 5 periods, 12% 6.35285

Instructions: Prepare the journal entries to record:

(A) the issuance of the note payable on January 1, 2020, and

(B) the first payment on December 31, 2020 and any amortization, assuming the effective interest rate method is used.