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) ($)