SERIAL PROBLEM: KATE'S CARD (Note: Th SP5. is is a continuation of the Serial Problem: Kate's Cards from Chapters I through 4.) Kate was a little worried about some of the practices of Fred Abbott, the CEO of Sentiments, and de cided that an association with Sentiments could damage the reputation of her own company. Kate is v concerned that her business be viewed as socially responsible and any damage to her reputation at this early stage could prove very difficult to overcome. She therefore decided to concentrate her efforts on producing a quality product that consumers would be proud to purchase and send to their loved ones. As expected, November saw a boom in Kate's greeting card business. She invested in additional computer graphics equipment, which she partially funded with a bank loan of $15,000 and an additional investment of her own funds into the business. The loan carries an interest rate of six percent with interest payments required semiannually. The entire principal balance is due in one balloon payment in two years. Kate uses a perpetual inventory system. As of December 2, 2015, Kate's Cards had the following account balances: $1,600 .. 13,800 900 .15,000 25,000 30,900 $11,900 Accumulated depreciation Cash.. Accounts receivable. . Inventory.. 16,800 Accounts payable ...16,000 Other current liabilities.. 3,600 Long-term note payable. Retained earnings. The company had the following transactions during December 2015