On December 31, 2012, Alexander Company had $1,235,900 of short-term debt in the form of notes payable due February 2, 2013. On January 21, 2013, the company issued 23,870 shares of its common stock for $44 per share, receiving $1,050,280 proceeds after brokerage fees and other costs of issuance. On February 2, 2013, the proceeds from the stock sale, supplemented by an additional $185,620 cash, are used to liquidate the $1,235,900 debt. The December 31, 2012, balance sheet is issued on February 23, 2013. Show how the $1,235,900 of short-term debt should be presented on the December 31, 2012, balance sheet.
On December 31, 2012, Alexander Company had $1,235,900 of short-term debt in the form of notes payable due February 2, 2013. On January 21, 2013, the company issued 23,870 shares of its common stock for $44 per share, receiving $1,050,280 proceeds after brokerage fees and other costs of issuance. On February 2, 2013, the proceeds from the stock sale, supplemented by an additional $185,620 cash, are used to liquidate the $1,235,900 debt. The December 31, 2012, balance sheet is issued on February 23, 2013. Show how the $1,235,900 of short-term debt should be presented on the December 31, 2012, balance sheet.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:On December 31, 2012, Alexander Company had $1,235,900 of short-term debt in the form of notes payable due February 2, 2013. On January 21, 2013, the company issued 23,870 shares of its
common stock for $44 per share, receiving $1,050,280 proceeds after brokerage fees and other costs of issuance. On February 2, 2013, the proceeds from the stock sale, supplemented by an additional
$185,620 cash, are used to liquidate the $1,235,900 debt. The December 31, 2012, balance sheet is issued on February 23, 2013. Show how the $1,235,900 of short-term debt should be presented on
the December 31, 2012, balance sheet.
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