The amount of total liabilities that would appear on Ramon's December 31 balance sheets for 2013 and 2014 would be
A)$18,945; $0.
B)$18,000; $0.
C)$18,945; $19,260.
D)$945; $315.

Question

Quizplus · Accepted Answer

$18,000 x 7% x 9/12 months = $945 interest payable on 12/31/13; $18,000 note payable + $945 interest payable = $18,945; the note is repaid before the end of 2014, so there is no remaining liability.

The Amount of Total Liabilities That Would Appear on Ramon's