On December 31, 2020, Alexander Company had $1,200,000 of short-term debt in the form of notes payable due February 2, 2021. On January 21, 2021, the company issued 25,000 ordinary shares for $36 per share, receiving $900,000 proceeds after brokerage fees and other costs of issuance. On February 2, 2021, the proceeds from the share sale, supplemented by an additional $300,000 cash, are used to liquidate the $1,200,000 debt. The December 31, 2020, statement of financial position is authorized for issue on February 23, 2021.

Instructions

Show how the $1,200,000 of short-term debt should be presented on the December 31, 2020, statement of financial position.