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Riley Company borrowed $40,000 on April 1, Year 1 from Titan Bank. The note issued...

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Accounting

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Riley Company borrowed $40,000 on April 1, Year 1 from Titan Bank. The note issued by Riley carried a one-year term and a 7% annual interest rate. Riley earned cash revenues of $1,060 during Year 1 and $1,500 during Year 2. Assume no other transactions. Based on this information alone, whot are the amounts of total liabilities that would appeat on Riley's December 31 balance sheets for Year 1 and Year 2. respectively? Multiple Choice $40,000 and $0 $42,100 and $0 $42,100 and $42,800 $2,100 and $700

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