[The Following Information Applies to the Questions Displayed Below

question 36

Multiple Choice

[The following information applies to the questions displayed below.]

Riley Company borrowed $36,000 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 $1,700 during Year 1 and $1,400 during Year 2. Assume no other transactions.

-Based on this information alone,what are the amounts of total liabilities that would appear on Riley's December 31 balance sheets for Year 1 and Year 2,respectively?

• A)$36,000 and $0
• B)$37,890 and $0
• C)$37,890 and $38,520
• D)$1,890 and $630

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Definitions:

Chiral Center

A carbon atom that is attached to four different groups, making its mirror images non-superimposable.

Stereoisomer

Molecules that have the same molecular formula and sequence of bonded atoms but differ in the three-dimensional orientations of their atoms in space.

Configuration

The fixed arrangement of atoms in a molecule that cannot be changed without breaking chemical bonds, different from conformation.

Asymmetric Carbon

A carbon atom bonded to four different groups or atoms, leading to chirality and optical activity in molecules.