E12-17

Assume bonds payable are amortized using the straight-line amortization method unless stated otherwise. Accounting for long-term notes payable transactions Consider the following note payable transactions of Caldwell Video Productions. Apr 1 Purchased equipment costing $56,000 by issuing a seven-year, 13% note payable. The note requires annual principal payments of $8,000 plus interest each April 1. Dec. 31 Accrued interest on the note payable. 2017 Apr 1 Paid the first installment on the note. Dec. 31 Accrued interest on the note payable. Requirements Journalize the transactions for the company. Considering the given transactions only, what are Caldwell Video Productions total liabilities on December 31, 2017