Chapter 14, Problem E14.18E

Accounting for long-term notes payable transactions
Learning Objective 1
2 Total Liabilities $65,280
Consider the following note payable transactions of Caleb Video Productions

2018
Oct. 1	Purchased equipment costing $80,000 by issuing a five-year. 8% note payable. The note requires annual principal payments of $16,000 plus interest each October 1.
Dec. 31	Accrued interest on the note payable.
2019
Oct. 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. Considenng the given transactions only, what are Caleb Video Productions' total liabilities on December 31, 2019?