QS 10-11 Computing payments for an installment note LO C1

On January 1, 2017, MM Co. borrows $440,000 cash from a bank and in return signs an 8% installment note for five annual payments of $110,201 each, with the first payment due one year after the note is signed. (Table B.3) (Use PV factors from table provided.)

1. Prepare the journal entry to record issuance of the note.