Grand Suites Hotels includes the following selected accounts in its general ledger at December 31, 2011:

Requirement
1. Prepare the liabilities section of Grand Suites’ balance sheet at December 31, 2011, to show how the company would report these items. Report a total for current liabilities.

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Note payable, long-term Bonds payable Interest payable (due next year) Estimated warranty payable 100,000 Accounts payable 425,000 Discount on bonds payable 1,100 Salary payable 1,500 Sales tax payable $ 38,000 12,750 3,000 700