Question
On December 31, 2020, McDaniel Company had $1,200,000of short-term debt in the form of notes payable due February 2, 2021. On January 21, 2021, the
On December 31, 2020, McDaniel Company had $1,200,000of short-term debt in the form of notes payable due February 2, 2021. On January 21, 2021, the company issued25,000shares of its common stock for $38per share, receiving $950,000proceeds after brokerage fees and other costs of issuance. On February 2, 2021, the proceeds from the stock sale, supplemented by an additional $250,000cash, are used to liquidate the $1,200,000debt. The December 31, 2020, balance sheet is issued on February 23, 2021.
Show how the $1,200,000of short-term debt should be presented on the December 31, 2020.
McDaniel Company
Partial Balance Sheet
(1)
(a) ($)
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