Laverne purchased a new piece of equipment to be used in its new facility. The $420,000 piece of equipment was purchased with a $63,000 down payment and with cash received through the issuance of a $357,000, 7%, 5-year mortgage payable issued on January 1, 2017. The terms provide for annual installment payments of $87,069 on December 31.

Prepare an installment payments schedule for the first five payments of the notes payable.

Prepare the journal entry to record the mortgage loan

Prepare the journal entries to record the installment payments.