Olsen Well Services Ltd$.$ purchased equipment for $$905,000$ on September $30,2024.$ The equipment was purchased with a $$137,000$ cash down payment and through the issue of a $$768,000,5-$year, $3\mathrm{.}6\%$ mortgage note payable for the balance. The terms provide for the mortgage to be repaid in monthly blended payments of $$14,006$ starting on October $31.$

Instructions

Record the purchase and the issue of the note payable on September $30.$

Record the first four instalment payments from October $31$ to January $31.$ Round amounts to the nearest dollar.

Repeat part $($b$)$ assuming that the terms provided for monthly fixed principal payments of $$12,800,$ rather than blended payments of $$14,006.$