Presented here are liability items for Desmond Inc. at December 31, 2014. Prepare the liabilities section of Desmond’s balance sheet.

Accounts payable $157,000 FICA taxes payable $ 7,800 Notes payable 20,000 Interest payable 40,000

(due May 1, 2015) Notes payable (due 2016) 80,000 Bonds payable (due 2018) 900,000 Income taxes payable 3,500 Unearned Sales taxes payable 1,700 rent revenue 240,000 Discount on bonds payable 41,000 AppendixLO2