Chapter 10 Liabilities 1. Liabilities schedule At Dec. 31, 20x1 Brewer Company has the following selected accounts after posting adjusting entries: Accounts Payable $ 55,000 Notes Payable, 3- month 90,000 Accumulated Depreciation-Equipment 14.000 Notes Payable, 5-year, 8% 75,000 Payroll Taxes Expense 6,000 Interest Payable 5,000 Mortgage Payable 180,000 Sales Taxes Payable 23,000 Instructions Prepare the current liability section of Brewer Company's balance sheet, assuming $12,000 of the mortgage is payable next year. 2. Note Payable On March 1, 20x1 Cooper Company borrows $80,000 from New National Bank by signing a 6-month, 6%, interest-bearing note. Instructions Prepare the necessary entries below associated with the note payable on the books of Cooper Company (a) Prepare the entry on March 1 when the note was issued. (b) Prepare any adjusting entries necessary on June 30 in order to prepare the semiannual financial statements. Assume no other interest accrual entries have been made. (c) Prepare the entry to record payment of the note at maturity