On November 1, 2017, Norwood borrows $540,000 cash from a bank by signing a five-year installment note bearing 7% interest. The note requires equal payments of $131,701 each year on October 31. (Table B.1,Table B.2,Table B.3, andTable B.4)(Use appropriate factor(s) from the tables provided.)

Required:

1.Complete an amortization table for this installment note.

2.Prepare the journal entries in which Norwood records the following:

(a) Accrued interest as of December 31, 2017 (the end of its annual reporting period).

(b) The first annual payment on the note.

Complete an amortization table for this installment note.(Round your intermediate calculations to the nearest dollar amount

Prepare the journal entries in which Norwood records for accrued interest as of December 31, 2017 (the end of its annual reporting period) and the first annual payment on the note.

-Record the interest accrued on the note as of December 31, 2017.

-Record the first installment payment on October 31, 2018. Assume no reversing entries were prepared.