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On the first day of the fiscal year, a company issues $85,000, 6%, five-year installment notes that have annual payments of $20,179. The first note

On the first day of the fiscal year, a company issues $85,000, 6%, five-year installment notes that have annual payments of $20,179. The first note payment consists of $5,100 of interest and $15,079 of principal repayment.

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Journalize the following transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
20Y1
Jan. 1 Installment notes are issued
20Y2
Jan. 1 First annual note payment is made

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