On December 31, 2012, Alexander Company had $1,296,800 of short-term debt in the form of notes payable due February 2, 2013. On January 21, 2013, the company issued 24,050 shares of its common stock for $37 per share, receiving $889,850 proceeds after brokerage fees and other costs of issuance. On February 2, 2013, the proceeds from the stock sale, supplemented by an additional $406,950 cash, are used to liquidate the $1,296,800 debt. The December 31, 2012, balance sheet is issued on February 23, 2013.

Show how the $1,296,800 of short-term debt should be presented on the December 31, 2012, balance sheet.