On the first day of the fiscal year, a company issues $58,000, 10%, six-year installment notes that have annual payments of $13,317. The first note payment consists of $5,800 of interest and $7,517 of principal repayment.

a. Journalize the entry to record the issuance of the installment notes.

	Cash
	Notes Payable

b. Journalize the first annual note payment. For a compound transaction, if an amount box does not require an entry, leave it blank.