Lyman purchased a new piece of equipment to be used in its new facility. The $380,000 piece

Question:

Lyman purchased a new piece of equipment to be used in its new facility. The $380,000 piece of equipment was purchased with a $40,000 down payment and with cash received through the issuance of a $340,000, 8%, 5-year mortgage note payable issued on October 1, 2014. The terms provide for quarterly installment payments of $20,792 on December 31, March 31, June 30, and September 30.

Instructions
(Round all computations to the nearest dollar.)
(a) Prepare an installment payments schedule for the first five payments of the notes payable.
(b) Prepare the journal entry related to the notes payable for December 31, 2014.
(c) Show the presentation for this obligation for December 31, 2014.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...