Server Planet operates a web hosting company. Examine the following items and prepare the current liability section of the company's December 31, 20X7, balance sheet.

The beginning of year accounts payable was \($100\),000. Purchases on trade accounts during the year were \($650\),000, and payments on account were \($610\),000.

The company incurs substantial costs for electricity to run its servers and air conditioning systems.

As of December 31, 20X7, it is estimated that \($55\),000 of electricity has been used, although the monthly billing for December has not yet been received.

Server Planet sells web hosting plans for as low as \($25\) per month. However, it requires its customers to prepay in 6-month increments. As of the end of the year, \($375\),000 had been collected for 20X8 web hosting plans.

Web hosting services are subject to sales taxes, and Server Planet collected \($65\),000 during the year. All of these amounts have been remitted to taxing authorities, with the exception of \($5\),000 that is due to be paid in January, 20X8.

The company has total bank loans of \($1\),500,000. This debt bears interest at 6%, payable monthly. As of December 31, 20X7, all interest had been paid, with the exception of accrued interest for the last half of December.

The company's bank loans (\($1\),500,000) are all due on June 30, 20X8. However, Server Planet has a firm lending agreement with the bank to renew and extend \($1\),000,000 oft his amount on a 5-year basis. The company intends to exercise this renewal option, but is not yet sure about the final disposition of the remainder.