The adjusted trial balance for Katy Corporation at the end of 2017 contained the following accounts

: Bonds payable, 10%$700,000

Interest payable20,000

Discount on bonds payable40,000

Loan50,000

Mortgage notes payable, 9%, due 202090,000

Accounts payable120,000

Instructions (a)Prepare the long-term liabilities section of the balance sheet.