Question: On August 1, 2007, Seinfeld Co issued a note payable to First Providence Bank in the amount of $1,200,000. The interest rate on the note is 8% and the note is payable in three payments annually of $400,000 plus interest on August 1st each year. The first payment is due August 1, 2008. Please provide the following:
a. Accrued interest as of December 31, 2008.
b. Current and Long-term note balance as of December 31, 2008