Accounting for long term note payable transactions
Consider the following note payable transactions of Tube Video Productions.
|
2014 |
||
|
Mar |
1 |
Purchased equipment costing $80,000 by issuing an eight year, 12% note payable. The note requires annual principal payments of $10,000 plus interest each March 1. |
|
Mar |
1 |
Recorded current portion of the note in the journal. |
|
Dec |
31 |
Accrued interest on the note payable. |
|
2015 |
||
|
Mar |
1 |
Paid the first installment on the note. |
|
Dec |
31 |
Accrued interest on the note payable. |
Requirements
1. Journalize the transactions for the company.
2. Considering the given transactions only, what are Tube Video Productions’ total liabilities on December 31, 2015?