KS Media Corporation had the following income statement and balance sheet for 2017:

Compute the following for KS during 2017:
a. Acquisition of equipment. KS sold no equipment during the year.
b. Payment of a long-term note payable. During the year, KS issued a $7,500 note payable.

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KS MEDIA CORPORATION Income Statement For the Year Ended December 31,2017 Service revenue Amortization expense Other expenses Net income $120,000 9,000 81,000 $30,000 KS MEDIA CORPORATION Balance Sheet December 31, 2017 and 2016 Assets 2017 2016 Liabilities 2017 2016 Current: Current: Cash $ 7,500 6,000 Accounts payable 12,000 9,000 Long-term notes 9,000 Accounts receivable15,000 Equipment, net 112,500 105,000 payable 15,000 18,000 Shareholders' equity Common shares Retained earnings 30,000 63,000 $135,000 $120,000 33,000 75,000 $135,000 $120,000