On January 1 of Year 1, Bryson Company obtained a $19,000, 4-year, 11% installment note from Campbell Bank. The note requires annual payments of $6,124, beginning on December 31 of Year 1. Prepare a table for this installment note, similar to the one presented in Exhibit 4. Enter all amounts as positive numbers. Round the computation of the interest expense to the nearest whole dollar. If an amount box does not require an entry, leave it blank.

Journalize the entries for the issuance of the note and the four annual note payments. If an amount box does not require an entry, leave it blank.

How will the annual note payment be reported in the Year 1 income statement?

Amortization of Installment Notes Year 1 Dec. 31 Notes Payable 19,000 Year3Dec.31InterestExpense Notes Payable Year4Dec.31InterestExpense Notes Payable Cash of $ X would be reported on the income statement