Question
On December 31st 2016 excello electric company have 1 million of short-term notes payable due February 7th 2017. Excello expected to refinance these notes on
On December 31st 2016 excello electric company have 1 million of short-term notes payable due February 7th 2017. Excello expected to refinance these notes on a long term basis. On January 15, 2017, the company issued bonds with a face value of 900,000 for 882,000. On January 22, 2017, the proceeds from the bond issue plus additional cash held by Excello on December 31, 2016, were used to liquidate the 1 million of short term notes. The December 31, 2016, balance sheet is issued on February 12, 2027.
Prepare a partial balance sheet as December 31, 2016, showing how the 1 million of short term notes payable should be disclosed
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