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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
(Refinancing of Short-Term Debt) On December 31, 2012, Alexander Company had $1,200,000 of short-term debt in the form of notes payable due February 2, 2013. On January 21, 2013, the company issued 25,000 shares of its common stock for $36 per share, receiving $900,000 proceeds after brokerage fees and other costs of issuance. On February 2, 2013, the proceeds from the stock sale, supplemented by additional $300,000 cash, are used to liquidate the $1,200,000 debt. The December 31, 2012, balance sheet is issued on February 23, 2013.
Instructions
Show how the $1,200,000 of short-term debt should be presented on the December 31, 2012, balance sheet, including note disclosure.
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