Use the following information for the Quick Studies below. (Algo) [The following information applies to the questions displayed below.] On January 1, MM Company borrows $350,000 cash from a bank and in return signs an 4% Installment note for five annual payments of $78,619 each. QS 10-14 (Algo) Issuance and interest for installment note LO C1 1. Prepare the journal entry to record issuance of the note. 2. For the first $78,619 annual payment at December 31, what amount goes toward interest expense? What amount goes toward principal reduction of the note? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entry to record Issuance of the note. View transaction list Journal entry worksheet 1 < Prev 6 of 15 Next > QS 10-14 (Algo) Issuance and interest for installment note LO C1 1. Prepare the journal entry to record issuance of the note. 2. For the first $78,619 annual payment at December 31, what amount goes toward interest expense? What amount goes toward principal reduction of the note? Complete this question by entering your answers in the tabs below. Required 1 Required 2 For the first $78,619 annual payment at December 31, what amount goes toward interest expense? What amount goes toward principal reduction of the note? Interest expense Principal reduction < Required 1