On January $1,$ McNeil Company borrows $$127,000$ cash by signing a four$-$year, $7\%$ installment note. The note requires four equal

payments consisting of accrued interest and principal on December $31$ of each for the next four years.

Required:

Compute the amount of each of the four equal payments. $($Note: Use Table B$\mathrm{.}3$ in Appendix B$.)$

Prepare an amortization table for this installment note.

Prepare the journal entries in which McNeil Company records the following:

$($a$)$ McNeil Company borrows $$127,000$ cash by signing a four$-$year, $7\%$ installment note.

$($b$)$ Record the first payment on December $31,$ Year $1.$

$($c$)$ Record the last payment on December $31,$ Year $4.$

Complete this question by entering your answers in the tabs below.

Prepare an amortization table for this installment note.

Note: Round your intermediate calculations to the nearest dollar amount. Round your answer to the nearest whole dollars.