Consider the following note payable transactions of Caldwell Video Productions.

$($i$)($Click the icon to view the transactions.$)$

Requirements

Journalize the transactions for the company.

Considering the given transactions only, what are Caldwell Video Productions' total liabilities on December $31,2025?$

Requirement $1.$ Journalize the transactions for the company. $($Record debits first, then credits. Select explanations on the last line of the journal entry.$)$

Oct. $1,2024$: 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 October $1.$

$\backslash$table$[[$Date$,$Accounts and Explanation,Debit,Credit$],[2024],[$Oct$.1],[,,,],[,,,],[,,,],[,,,]]$

Oct. $1,2024$

Dec. $31,2024$

Oct. $1,2025$

Dec. $31,2025$

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 October $1.$

Accrued interest on the note payable.

Paid the first installment on the note.

Accrued interest on the note payable.