Exercise 13-8 On December 31, 2017, Cullumber Company had $1,103,000 of short-te
ID: 2589236 • Letter: E
Question
Exercise 13-8
On December 31, 2017, Cullumber Company had $1,103,000 of short-term debt in the form of notes payable due February 2, 2018. On January 21, 2018, the company issued 24,800 shares of its common stock for $33 per share, receiving $818,400 proceeds after brokerage fees and other costs of issuance. On February 2, 2018, the proceeds from the stock sale, supplemented by an additional $284,600 cash, are used to liquidate the $1,103,000 debt. The December 31, 2017, balance sheet is issued on February 23, 2018.
Show how the $1,103,000 of short-term debt should be presented on the December 31, 2017, balance sheet. (Enter account name only and do not provide descriptive information.)
Cullumber Company
Partial Balance Sheet
December 31, 2017
Cullumber Company
Partial Balance Sheet
December 31, 2017
Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term DebtProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term DebtTotal Property, Plant and EquipmentTotal Stockholders' Equity
: $Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term DebtProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term DebtTotal Property, Plant and EquipmentTotal Stockholders' Equity
:Explanation / Answer
Cullumber Company
Partial Balance sheet
12/31/2017
Current liabilities :
Notes payable (refer note 1) ----------------------------------------------- $284600
Long-term debt:
Notes payable refinanced
in February 2013(refer note 1) ------------------------------ $818400
note 1 =
short-term debt refinanced. As of December 31, 2017, the company had notes payable totaling$1,103,000 due on February 2, 2018. These notes were refinanced on their due date to the extentof $818400 received from the issuance of common stock on January 21, 2018. The balance of$284600 was liquidated using current assets.
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