The following instalment payment schedule is for a long-term bank loan payable: Cash Payment Interest Expense Reduction of Principal Interest Period Issue date 1 2 3 4 $25,407.23 25,407.23 25,407.23 25,407.23 25,407.23 $5,500 4,504.64 3.459.51 2,362.12 1.209.88 $19.907.23 20,902.59 21,947.72 23,045.11 24.197.35 Principal Balance $110,000 90,092.77 69.190.18 47,242.46 24.197.35 0 5 (a) Your answer is correct. Assuming payments are made annually, what is the interest rate on the bank loan? (Round answer to the nearest whole percent, e 12%.) Interest rate 5% Prepare the journal entry to record the first instalment payment. (Round answers to 2 decimal places, eg. 1.25. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation Debit Credit