On January 1, Year 1, Luzak Company issued a $45,000, 4-year, 8% Installment note to McGee Bank. The note requires annual payments of $13,586, beginning on December 31, Year 1. Journalize the entries to record the following: Year 1 Jan. 1 Issued the note for cash at its face amount. Dec. 31 Paid the annual payment on the note, which consisted of Interest of $3,600 and principal of $9,986. Year 4 Dec. 31 Paid the annual payment on the note, including $1,006 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. 1 Paid the annual payment on the note, which consisted of interest of $3,600 and principal of $9,986. For a compound transaction, if an amount box does not require an entry, leave it blank. Year 1, Dec. 31 Paid the annual payment on the note, including $1,006 of interest. The remainder of the payment reduced the principal balance on the note. For a compound transaction, if an amount box does not require an entry, leave it blank. Year 4. Dec. 31