on the first day of the fiscal year, hawthorne company obtained an $88,000, 7-year, 5% installment note from sea side bank. the note requires annual payments of $15,208, with the first payment occurring on the last day of the fiscal year. the first payment consists of interest of $4,400 and principal repayment of $10,808. the entry hawthorne would make to journalize the first annual payment due on the note would include a