The following are selected items from the accounting records of Denver Chocolates for the year ended December 31, 2015:

Note payable to Northwest Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $500,000

Income taxes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000

Accrued expenses and payroll taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,000

Mortgage note payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 750,000

Accrued interest on mortgage note payable . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000

Trade accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250,000

Unearned revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000

Potential liability in pending lawsuit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000

Other Information

1. The note payable to Northwest Bank is due in 60 days. Arrangements have been made to renew this note for an additional 12 months.

2. The mortgage requires payments of $6,000 per month. An amortization table shows that its balance will be paid down to $739,000 by December 31, 2016. (Note: That is, the unpaid balance will be $739,000 on December 31, 2016).

3. The accrued interest on the mortgage note payable is paid monthly. The next payment is due near the end of the first week in January 2016.

4. Denver Chocolates has been sued for $160,000 in a contract dispute. As of now, it is not possible to know whether the company will win or lose in the lawsuit. It is also not possible to make a reasonable estimate of the possible loss that the company may incur if they lost.

Instructions: Using the information provided, prepare the current and long-term liability sections of the companys balance sheet dated December 31, 2015. (Within each classification, items may be listed in any order.)