Chastains’ Hair Salons’ balance sheet at December 31, 2012, is as follows:

Current Liabilities

Portion of long term note payable due within one year

$ 10,000

Interest payable ($200,000 * 0.06 * 6/12)

6,000

Total current liabilities

$ 16,000

Long Term Liabilities

 

Long term note payable

$190,000

Total liabilities

$206,000