At December 31, Year 1 the accounting records of Gordon, Incorporated contain the following items: $ 18,750 Accounts Payable Land Building Notes Payable Retained Earnings $ 2,500 3 30,000 31,250 ? 125,000 Accounts Receivable Cash Equipment Capital Stock 40,000 12,500 If the Cash balance at December 31, Year 1 is $67,500, the Notes Payable balance is: Multiple Choice $47.500 $137.500 $118.750