KS Media Corporation had the following income statement and balance sheet for 2020:

                                       KS MEDIA CORPORATION
                                        Income Statement
                           For the Year Ended December 31, 2020
Service revenue ............................................................. $120,000
Amortization expense ......................................................... 9,000
Other expenses .................................................................. 81,000
Net income ......................................................................  $ 30,000

Compute the following for KS during 2020:

a. Acquisition of equipment. KS sold no equipment during the year.

b. Payment of a long-term note payable. During the year, KS issued a $7,500 note payable.

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KS MEDIA CORPORATION Balance Sheet December 31, 2020 and 2019 Assets 2020 2019 Liabilities 2020 2019 Current assets Current liabilities Cash $ 7,500 $ 6,000 Accounts payable $ 12,000 $ 9,000 Accounts receivable Long-term notes payable Shareholders' equity 15,000 9,000 15,000 18,000 Equipment, net 112,500 105,000 Common shares 33,000 30,000 Retained earnings 75,000 63,000 Total assets $135,000 $120,000 Total liabilities and shareholders' equity $135,000 $120,000