On January $1,$ the first day of the fiscal year, Shiller Company borrowed $$120,000$ by giving a seven$-$year, $9\%$ installment note to Soros Bank. The note requires annual payments of $$23,843,$ with the first payment occurring on the last day of the fiscal year. The first payment consists of interest of $$10,800$ and principal repayment of $$13,043.$

Required:

A$.$ Journalize the entries to record the following transactions. Refer to the Chart of Accounts for exact wording of account titles.

$1.$ Issued the installment note for cash on the first day of the fiscal year.

$2.$ Paid the first annual payment on the note.

B$.$ Explain how the notes payable would be reported on the balance sheet at the end of the first year.