Dambro purchased a new piece of equipment to be used in its new facility. The $438,000 piece of equipment was purchased with a $51,100 down payment and with cash received through the issuance of a $386,900, 9% year mortgage note payable issued on October 1, 2010. The terms provide for quarterly installment payments of $28,495 on Dec.31, Mar. 31, June 30, and Sept. 30
Prepare an installment payment schedule for the first five payments of the notes payable quarterly.
Prepare all necessary journal entries related to the notes payable for Dec.31, 2010