On January 1, MM Co. borrows $320,000 cash from a bank and in return signs an 8% installment note for five annual payments of $80,146 each 1. Prepare the journal entry to record issuance of the note. 2. For the first $80,146 annual payment at December 31, what amount goes toward interest expense? What amount goes toward principal reduction of the note? Complete this question by entering your answers in the tabs below. Required: Required 2 Prepare the journal entry to record issuance of the note. View transaction list Journal entry worksheet 1 Record the issuance of the note. Note: Enter debits before credits Date Jan 01 Credit General Journal Cash Notes payable Debit 320,000 320,000 On January 1, MM Co. borrows $320,000 cash from a bank and in return signs an 8% installment note for five annual payments of $80,146 each 1. Prepare the journal entry to record issuance of the note. 2. For the first $80,146 annual payment at December 31, what amount goes toward interest expense? What amount goes toward principal reduction of the note? Complete this question by entering your answers in the tabs below. Required 1 Required 2 For the first $80,146 annual payment at December 31, what amount goes toward interest expense? What amount goes toward principal reduction of the note? Interest expense Principal reduction