On January

1,MM

Co. borrows

$340,000

cash from a bank and in return signs an

8%

installment note for five annual payments of

$85,155

each.\ Prepare the journal entry to record issuance of the note.\ For the first

$85,155

annual payment at December 31 , what amount goes toward interest expense What amount goes toward principal reduction of the note?

On January 1, MM Co. borrows $340,000 cash from a bank and in return signs an 8% installment note fo five annual payments of $85,155 each. 1. Prepare the journal entry to record issuance of the note. 2. For the first $85,155 annual payment at December 31 , what amount goes toward interest expense What amount goes toward principal reduction of the