2016 Oct. 1 Purchased equipment costing $40,000 by issuing a five-year, 9% note payable. The note requires annual principal payments of $8,000 plus interest each Oct. 1. Dec. 31 2017 Oct. 1 Dec. 31 Accrued interest on the note payable. Paid the first installment on the note. Accrued interest on the note payable. 2016 Oct. 1 Purchased equipment costing $40,000 by issuing a five-year, 9% note payable. The note requires annual principal payments of $8,000 plus interest each Oct. 1. Dec. 31 2017 Oct. 1 Dec. 31 Accrued interest on the note payable. Paid the first installment on the note. Accrued interest on the note payable