Short term notes payable should be disclosed

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On December 31, 2010, Excello Electric Company had $1 million of short term notes payable due February 7, 2011. Excello expected to refinance these notes on a long term basis. On January 15, 2011 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, 2011 the proceeds from the bond issue plus additional cash held by the company on December 31, 2010 were used to liquidate the $1 million of short term notes. The December 31, 2010 balance sheet is issued on February 12, 2011.

Required:
Prepare a partial balance sheet as of December 31, 2010 showing how the $1 million of short term notes payable should be disclosed. Include an appropriate footnote for proper disclosure. 

Reference no: EM13871861

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