The accountant for Juliet Corporation prepared the following schedule of liabilities as of December 31, 2020. Accounts payable and accrued expenses 1,650,000 Notes payable - Trade 1,200,000 Notes payable - Bank 8,000,000 Wages and salaries payable 350,000 Interest payable 2 10% mortgage note payable 6,000,000 12% mortgage note payable 4,500,000 Bonds payable 10,000,000 The following additional information pertains to these liabilities: a. The bank notes payable includes two separate notes payable to First Bank: (1) A 2,000,000, 8% note issued March 1, 2020, payable on demand. Interest is payable each six months. Juliet already made the first semi-annual interest payment on August 31, 2020. (2) A 2-year, 6,000,000, 11% note issued January 2, 2019. On December 30, 2020, after paying the accrued interest, Juliet negotiated a written agreement with the First Bank to replace this note with a 2-year, 6,000,000, 10% note. The new note was issued January 2, 2021. b. The 10% mortgage note was issued November 1, 2015, with a term of 10 years. The terms of the note give the holder the right to demand immediate payment if the company fails to make a quarterly interest payment within 10 days of the date the payment is due. As of December 31, 2020, Juliet is two months behind in paying its required interest payment. Penalty for non-payment of interest charged by the bank was 120,000. c. The 12% mortgage note was issued May 1, 2011, with a term of 20 years. Interest is due annually on April 30. d. The bonds payable are 10-year, 8% bonds, issued June 30, 2011. Interest is payable annually every June 30