Joe plans to start a business. He only has $15,000 saved and he needs another $20,000 to start up. As a result, on April 15 Joe signed a note payable, with his bank being the lender. The note will need to be completely paid off in eighteen months and the interest rate is 6%. Payments must be made semiannually and at amount X. Joe records the note payable by debiting cash for $20,000 and crediting notes payable for $20,000. On October 15, Joe will make his first payment. But he needs to know: how much of the first payment is accrued interest, and how should the payment of accrued interest be recorded?