On January 1, 2016, Bryson Company obtained a $147,750, four-year, 7% installment note from Campbell Bank. The note requires annual payments of $43,620, beginning on December 31, 2016.
Required:
A. Prepare an amortization table for this installment note, similar to the one presented in Exhibit 4.
B. Journalize the entries for the issuance of the note and the four annual note payments. Be sure to include the year in the date for the entries. Refer to the Chart of Accounts for exact wording of account titles.
C. Describe how the annual note payment would be reported in the 2016 income statement.