on january 1, 20y2, hebron company issued a $127,000, 5-year, 11% installment note to ventsam bank. the note requires annual payments of $34,362, beginning on december 31, 20y2. journalize the entries to record the following: 20y2 jan. 1 issued the note for cash at its face amount. dec. 31 paid the annual payment on the note, which consisted of interest of $13,970 and principal of $20,392. 20y5 dec. 31 paid the annual payment on the note, including $6,473 of interest. the remainder of the payment reduced the principal balance on the note.