The total liabilities related to this note reported in Central Food's 31 December 2014, balance sheet is:
A) $1,400,000.
B) $1,484,000.
C) $1,407,000.
D) $1,414,000.

Question

Quizplus · Accepted Answer

The total liabilities related to this note consist of the $1,400,000 principal balance plus the $7,000 accrued interest ($1,400,000 x 10% x 1/12). Therefore, the total liabilities related to this note is $1,407,000.

The Total Liabilities Related to This Note Reported in Central