On January $1,$ Esly Company obtained a $$125,000,7-$year $5\%$ installment note from Farmers Bank. The note requires annual payments of $$21,602,$ with the first payment occurring on the last day of the fiscal year.

$($a$)$ Prepare an amortization schedule for Year $1$ and Year $2$

$\backslash$table$[[$Date$,\backslash$table$[[$January $1],[$carrying$],[$amount$]],$Note payment,$\backslash$table$[[$Interest$],[$expense$]],\backslash$table$[[$Decrease in$],[$Notes payable$]],\backslash$table$[[$Dec $31],[$carrying$],[$amount$]]],[,,,,,],[,,,,,],[,,,,,]]$

$($b$)$ Journalize the following entries:

a$.$ Issued the installment notes for cash on January $1.$

b$.$ Paid the first annual payment on the note.

c$.$ Paid the second annual payment on the note