MCQ-00361 At December 31, Year 1, Cain, Inc. owed notes payable of $1,750,000, due on May 15, Year 2. Cain expects to retire this debt with proceeds from the sale of 100,000 shares of its common stock. The stock was sold for $15 per share on March 10, Year 2, prior to the issuance of the year-end financial statements. In Cain's December 31, Year 1, balance sheet, what amount of the notes payable should be excluded from current liabilities? A. $0 B. $250,000 C. $1,500,000 D. $1,750,000 Explanation Choice "C" is correct. $1,500,000 should be excluded from current liabilities because 100,000 shares of common stock were sold at $15 per share. The remaining $250,000 should be included in current liabilities

WHY ?issue common stock CAN retired the current liabilities to non current liabilites , the common stocks are equity! how to record the entry