On January 1 of 20Y2, Hebron Company issued a $175,000, five-year, 8% installment note to Ventsam Bank. The note requires annual payments of $43,830, beginning on December 31 of 20Y2.

an. 1 Issued the noce for cash at its fece amount Dec. 31. Paid the annual payment on the note, which consisted of interest of $14,000 and principal of $29,830 Paid the annual payment on the note, which included $4,253 of interest. The remainder of the payment reduced the principal balance on the note. Issued the note for cash at its face amount Year 1 Jan. l the annual paymers on the note, wwcn consisted of nterest of $14,000 and principal of S 29,B30. Forcompovd bansaction, ran amount box does not require an entry, leave t ba Year 1 Dec. 3 Paid the annual payment on the note, which included $6,253 of interest. The remainder of the payment reduced the principal balance on the note. For a compound transaction, an amount box does not require an entry eave it blank Year 4 Dec.31