On December 31, 2012, Alexander Company had $1,238,800 of short-term debt in the
ID: 2377804 • Letter: O
Question
On December 31, 2012, Alexander Company had $1,238,800 of short-term debt in the form of notes payable due February 2, 2013. On January 21, 2013, the company issued 25,290 shares of its common stock for $40 per share, receiving $1,011,600 proceeds after brokerage fees and other costs of issuance. On February 2, 2013, the proceeds from the stock sale, supplemented by an additional $227,200 cash, are used to liquidate the $1,238,800 debt. The December 31, 2012, balance sheet is issued on February 23, 2013.
Show how the $1,238,800 of short-term debt should be presented on the December 31, 2012, balance sheet.
Partial Balance Sheet
December 31, 2012 Current AssetsCurrent LiabilitiesExpensesIntangible AssetsLong-term InvestmentsLong-term DebtProperty, Plant and EquipmentRevenuesStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal ExpensesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term DebtTotal Property, Plant and EquipmentTotal RevenuesTotal Stockholders' Equity $ Current AssetsCurrent LiabilitiesExpensesIntangible AssetsLong-term InvestmentsLong-term DebtProperty, Plant and EquipmentRevenuesStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal ExpensesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term DebtTotal Property, Plant and EquipmentTotal RevenuesTotal Stockholders' Equity On December 31, 2012, Alexander Company had $1,238,800 of short-term debt in the form of notes payable due February 2, 2013. On January 21, 2013, the company issued 25,290 shares of its common stock for $40 per share, receiving $1,011,600 proceeds after brokerage fees and other costs of issuance. On February 2, 2013, the proceeds from the stock sale, supplemented by an additional $227,200 cash, are used to liquidate the $1,238,800 debt. The December 31, 2012, balance sheet is issued on February 23, 2013. Show how the $1,238,800 of short-term debt should be presented on the December 31, 2012, balance sheet.
Explanation / Answer
NOTES PAYABLE: $1,238,800
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