On November 1, 2019, Norwood borrows $410,000 cash from a bank by signing a five-year installment note bearing 9% interest. The note requires equal payments of $105,407 each year on October 31.

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, 2019 (the end of its annual reporting period).

(b) The first annual payment on the note.