Zahn Inc. sold 11,500 annual magazine subscriptions for $61 during December 20Y4. These new subscribers will receive monthly issues, beginning in January 20Y5. Zahn Inc. issued a $123,200, 180–day, 5% note payable on December 1, 20Y4. On March 31, 20Y5, Zahn Inc. had accounts payable of $ 22,700 and accrued wages payable of $6,700. Required:
Prepare the Current Liabilities section of the balance sheet for Zahn Inc. on March 31, 20Y5.

                                       Zahn Inc.

            Current Liabilities Section of the Balance Sheet

                                   March 31, 20Y5

Current liabilities                                                       Amount

Accounts payable                                                      $22,700

Accrued wages payable                                             $6,700

Accrued interest payable                                           $3,080

($123,200 * 5% * 6/12)  

Notes payable                                                             $123,200

Advances on magazine subscriptions                       $526,125

(11,500 * $61 * 9/12)

Total current liabilities                                                $681,805

b is the correct answer