Short-Term Debt Expected to Be Refinanced On December 31, 2019, Excello Electric Company had $1 million of short-term notes payable due February 7, 2020. Excello expected to refinance these notes on a long-term basis. On January 15, 2020, the company issued bonds with a face value of $900,000 for $882,000.
On January 22, 2020, the proceeds from the bond issue plus additional cash held by Excello on December 31, 2019, were used to liquidate the $1 million of short-term notes. The December 31, 2019, balance sheet is issued on February 12, 2020.
Required:
Prepare a partial balance sheet as of December 31, 2019, showing how the $1 million of short-term notes payable should be disclosed. Include an appropriate footnote for proper disclosure.
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Chapter 9 Solutions
Intermediate Accounting: Reporting And Analysis
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