On January 1, 2024, Mitchell Company purchases new equipment for $700,000. Mitchell is required to make a down payment of $100,000 and issue an installment note for the remaining balance of $600,000. The note requires payments of $81,905.88 every three months, beginning March 31, 2024, over the next two years. The interest rate on the note is 8% annually (or 2% every three months).

Required:
1. Record the purchase of equipment with down payment of $100,000 and the installment note of $600,000 on January 1, 2024.
2. Record the first payment of $81,905.88 on March 31, 2024.