On December 31, 2014, Hernandez Company had $3,000,000 of short-term debt in the form of notes payable

Question:

On December 31, 2014, Hernandez Company had $3,000,000 of short-term debt in the form of notes payable due February 2, 2015. On January 21, 2015, the company issued 50,000 shares of its for $50 per share, receiving $2,500,000 proceeds after brokerage fees and other costs of issuance. On February 2, 2015, the proceeds from the stock sale, supplemented by an additional $500,000 cash, are used to liquidate the $3,000,000 debt. The December 31, 2014, is issued on February 23, 2015.

Instructions
Show how the $3,000,000 of short-term debt should be presented on the December 31, 2014, including note disclosure.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...