Exercise 1: Liabilities Section Report As of December 31, 20x1 the company Taino Borinquen presented in its adjusted Balance Sheet the following accounts, with their respective balances:

Accounts payable $ 95,000 Note payable, 3-month 60,000 Accumulated depreciation-Equipment $ 24,000 Estimated uncollectible accounts 5,000 Bonds payable, 10-year, 7% semi-annual 500,000 Discount on bonds payable 20,000 Note payable, 5-year, 6% 90,000 Salary expense to be paid 8,000 Interest payable 6,000 Mortgage 150,000 Sales tax payable (SUT) 38,000

Additional information: - $30,000 of the mortgage is due on or before December 31, 20x2. - The Taino Borinquen company is refinancing the note payment that is due in three months to three months from now, for a period of two years starting the first installment on January 2, 20x2, 20x3, 20x3. first installment on January 2, 20x3.

Instructions: 1. Prepare the liabilities section of the company's Statement of Condition. Taino Borinquen, INC. as of December 31, 20x1.