Exercise 13-8 On December 31, 2017, Marin Company had $1,133,000 of short-term debt in the form of notes payable due February 2, 2018. On January 21, 2018, the company issued 27,100 shares of its common stock for $29 per share, receiving $785,900 proceeds after brokerage fees and other costs of issuance. On February 2, 2018, the proceeds from the stock sale, supplemented by an additional $347,100 cash, are used to liquidate the $1,133,000 debt. The December 31, 2017, balance sheet is issued on February 23, 2018. Show how the $1,133,000 of short-term debt should be presented on the December 31, 2017, balance sheet. (Enter account name only and do not provide descriptive information.) Marin Company Partial Balance Sheet December 31, 2017 : $ :
Marin Company | ||
Partial Balance sheet | ||
For the year ended December 31, 2017 | ||
Current Liabilities: | ||
Notes Payable (Note) | $ 3,47,100 | |
Long - term debt: | ||
Short term debt expected to be refinanced (Note) | $ 7,85,900 | |
Note: | ||
As note payable on February 2, 2018 shall be paid off by the proceeds of shares issued on January 21, 2018 to an extent $785900. Hence no current liability shall be recorded from this amount as it is refinanced from issuing common stock. The Balance of $347100 is paid in cash and this is paid from existing current assets, which means to an extent of $347100 shall be recorded as current liability. |
Exercise 13-8 On December 31, 2017, Marin Company had $1,133,000 of short-term debt in the form...
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