Consider the following note payable transactions of Tube Video Productions.

2014

Mar. 1 Purchased equipment costing $ 80,000 by issuing an eight-year, 12% note payable. The note requires annual principal payments of $ 10,000 plus interest each March 1.

Dec. 31 Accrued interest on the note payable.

2015

Mar. 1 Paid the first installment on the note.

Dec. 31 Accrued interest on the note payable.

Requirements

1. Journalize the transactions for the company.

2. Considering the given transactions only, what are Tube Video Productions’ total liabilities on December 31, 2015?