Madison Company issued an interest-bearing note payable with a face value of $25,200 and a stated interest rate of 8% to Metropolitan Bank on August 1, Year 1. The note carried a one-year term.
Based on this information alone, what is the amount of total liabilities appearing on Madison's balance sheet as of December 31, Year 1?
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| Balance Sheet | |
| Current liabilities | |
| Interest payable (25200*8%*5/12) | 840 |
| Notes payable | 25200 |
| Total liabilities | 26040 |
Madison Company issued an interest-bearing note payable with a face value of $25,200 and a stated...