On the first day of the fiscal year, a company issues $80,000, 7%, seven-year instalment notes that have annual payments of $14,844. The first note payment consists of $5,600 of interest and $9,244 of principal repayment.
a. Journalize the entry to record the issuance of the instalment notes.
b. Journalize the first annual note payment. For a compound transaction, if an amount box does not require an entry, leave it blank.