Short Term Debt Expected to Be Refinanced On December 31, 2007 Excello Electric Company had $1 million of short term notes payable due February 7, 2008. Excello expected to refinance these notes on a long term basis.
On January 15, 2008 the company issued bonds with a face value of $900,000 at 98; brokerage fees and other costs of issuance were $3,450.
On January 22, 2008 the proceeds from the bond issue plus additional cash held by the company on December 31, 2007 were used to liquidate the $1 million of short term notes. The December 31, 2007 balance sheet is issued on February 12, 2008.
Required
Prepare a partial balance sheet as of December 31, 2007 showing how the $1 million of short term notes payable should be disclosed. Include an appropriate footnote for proper disclosure.