Dec. 31 Paid the annual payment on the note, which consisted of interest of $3,120 andprincipal of $5,440.Year 4Dec. 31 Paid the annual payment on the note, including $917 of interest. The remainderof the payment reduced the principal balance on the note.Issued the note for cash at its face amount. If an amount box does not require an entry, leave it blank.Year 1, Jan. 1Paid the annual Accounts Payable e, which consisted of interest of $3,120 and principal of $5,440. If an amount box does not requan entry, leave itBonds PayableYear 1, Dec. 31CashInterest ExpenseNotes PayablePaid the annual payment on the note, including $917 of interest. The remainder of the payment reduced the principal balance on thenote. If an amount box does not require an entry, leave it blank.Year 4, Dec. 31 Entries for Installment Note TransactionsOn January 1, Year 1, Wedekind Company issued a $26,000, 4-year, 12% installment note to Shannon Bank. The note requires annualpayments of $8,560, beginning on December 31, Year 1.Journalize the entries to record the following:Year 1Jan. 1 Issued the note for cash at its face amount.Dec. 31 Paid the annual payment on the note, which consisted of interest of $3,120 andprincipal of $5,440.Year 4Dec. 31 Paid the annual payment on the note, including $917 of interest. The remainderof the payment reduced the principal balance on the note.Issued the note for cash at its face amount. If an amount box does not require an entry, leave it blank.Year 1, Jan. 1Paid the annual payment on the note, which consisted of interest of $3,120 and principal of $5,440. If an amount box does not requirean entry, leave it blank.Year 1, Dec. 3110:2

year 1, jan.1 Cash dr. $26,000 To Notes payable cr. $26,000 (To record…

Dec. 31 Paid the annual payment on the note, which consisted of interest of $3,120 and of $5,440. principal Year 4 Dec. 31 Paid the annual payment on the note, including $917 of interest. The remainder of the payment reduced the principal balance on the note. Issued the note for cash at its face amount. If an amount box does not require an entry, leave it blank. Year 1, Jan. 1 Paid the annual Accounts Payable e, which consisted of interest of $3,120 and principal of $5,440. If an amount box does not requ an entry, leave it Bonds Payable Year 1, Dec. 31 Cash Interest Expense Notes Payable Paid the annual payment on the note, including $917 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