Laverne purchased a new piece of equipment to be used in its new facility. The $355,000 piece of equipment was purchased with a $35,500 down payment and with cash received through the issuance of a $319,500, 7%, 5-year mortgage payable issued on January 1, 2017. The terms provide for annual installment payments of $77,923 on December 31.

Laverne purchased anew piece of cquipment to be used in its new facility, The $355,000 piece of cquipment was purchased with a $35,500 down payment and with cash recaived through the issuance of a $319,500,7%,5 year mortgage payable issued on January 1, 2017. The terms provide for annual installment payments of $77,923 on December 31. 9.500,7%5 payment received Prepare an installment payments schedule for the first five payments of the notes payable. (Round answers to 0 decimal places, eg. 125 Principa Annual Cash Interest Reductian of Principal Interest Period Expense Issue Date Amount may mount may be off due torounding Prepare thejournal entry related to the notes pa able or December 31, 2017 Round answers to 0 decimal p ace 125. Credit acount titles are automatica y indented when amount is entered. Do not indent manually. e 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 O decimal places, eg. 125.) LAVERNE Balance Sheet (Partial) December 31, 2017