rism Checker StudyDaddy - Get Bachelor of Busines... Entries for Installment Note Transactions On January 1, Year 1, Wedekind Company issued a $60,000, 4 year, 8% installment note to Shannon Bank. The note requires annual payments of $19,927, beginning on December 31, Year 1. Journalize the entries to record the following: Year 1 Jan. 1 Issued the note for cash at its face amount Dec. 31 Paid the annual payment on the note, which consisted of interest of $5,260 and principal of $14,647. Year 4 Dec. 31 Paid the annual payment on the note, including 51,476 of interest. The remainder of the payment reduced the principal balance on the note. Issued the note for cash at its face amount of an amount box does not require an entry leave it blank. Year 1, Jan, 1 Cash Notes Payable Pald the annual payment on the note, which consisted of interest of $5,280 and principal of $14,647. If an amount box does not require an entry, leave it blank. Year 1, Dec. 31 Interest Expense Notes Payable 89 Cash Feedback Check My W The cash payment is the same in each year. The interest and principal repayment, however change each year. This is because the carrying amount (book values of the note decreases each year as principal is repaid, which decreases the interest After the final payment, the carrying amount on the note is 2010, indicating that the note has been paid in full Pald the annual payment on the note, including $1.476 of interest. The remainder of the payment reduced the principal balance on the note. If an amount box does not require an entry, leave it blank Year 4, Dec. 31 Interest Expense Notes Payable Cash