On January 1, 2020, a pet store buys a new dog and cat washing station costing $7,000 with an 8.1% installment note. The note will be paid off with payments made at the end of each quarter over two years. Each payment is $956.60.

Complete the installment note schedule below, rounding all numbers to the nearest dollar:

PERIOD

CASH PAYMENT

INTEREST EXPENSE

REDUCTION OF N/P

N/P BALANCE

1/1/20 --- --- --- $7,000

3/31/20

6/30/20

9/30/20

12/31/20

3/31/21

6/30/21

9/30/21

12/31/21

What is the journal entry to record the purchase of the equipment on January 1, 2020?

What is the journal entry for March 31, 2021?