Laverne purchased a new piece of equipment to be used in its new facility. The $ 380,000 piece of equipment was purchased with a $ 57,000 down payment and with cash received through the issuance of a $ 323,000, 8%, 5-year mortgage payable issued on January 1, 2017. The terms provide for annual installment payments of $80,897 on December 31.

Prepare an installment payments schedule for the first five payments of the notes payable. (Round answers to 0 decimal places, e.g. 125.)

Annual Interest Period	Cash Payment	Interest Expense	Reduction of Principal	Principal Balance
Issue Date
1
2
3
4
5

* Amount may be off due to rounding.

Prepare the journal entry related to the notes payable for December 31, 2017. (Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date

Account Titles and Explanation

Debit

Credit

Dec. 31

Show the balance sheet presentation for this obligation for December 31, 2017. (Hint: Be sure to distinguish between the current and long-term portions of the note.) (Round answers to 0 decimal places, e.g. 125.)

Partial Balance Sheet (mm/dd/yyyy)
_____________
_____________	$__________
_____________
_____________	$__________
_____________	$__________