On the first day of the fiscal year, Shiller Company borrowed $$26,000$ by giving a $3-$year, $12\%$ installment note to Soros Bank. The note requires annual payments of $$10,952,$ with the first payment occurring on the last day of the fiscal year. The first payment consists of interest of $$3,120$ and principal repayment of $$7,832.$

Journalize the entries to record the following: