Problem 10-5A (Algo) Installment notes LO C1

On January 1, 2021, Norwood borrows $520,000 cash from a bank by signing a five-year installment note bearing 6% interest. The note requires equal payments of $123,445 each year on December 31. Required: 1. Complete an amortization table for this installment note. 2. Prepare the journal entries in which Norwood records the following: (a) Norwood borrows $520,000 cash by signing a five-year, 6% installment note. (b) Record the first installment payment on December 31, 2021. (c) Record the second installment payment on December 31, 2022.