Consider the following note payable transactions of Caleb Video Productions. 2018 Oct. 1 Purchased equipment costing $80,000 by issuing a five-year, 8% note payable. The note requires annual principal...

2018

Oct. 1

Purchased equipment costing $80,000 by issuing a five-year, 8% note payable. The note requires annual principal payments of $16,000 plus interest each October 1.

Dec. 31

Accrued interest on the note payable.

2019

Oct. 1

Paid the first installment on the note.

Dec. 31

Accrued interest on the note payable.