Exercise 138 On December 31 2017 Marin Company had 1103000 o

Exercise 13-8 On December 31, 2017, Marin Company had $1,103,000 of short-term debt in the form of notes payable due February 2, 2018. On January 21, 2018, the company issued 24,800 shares of its common stock for $33 per share, receiving $818,400 proceeds after brokerage fees and other costs of issuance. On February 2, 2018, the proceeds from the stock sale, supplemented by an additional $284,600 cash, are used to liquidate the $1,103,000 debt. The December 31, 2017, balance sheet is issued on February 23, 2018. Show how the $1,103,000 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

Solution

Marin company

Partial balance sheet

December 31 2017

Short-term debt refinanced. As of December 31, 2017, the company had notes payable totaling $1,103,000 due on February 2, 2018. These notes were refinanced on their due date to the extent of $818400 (1103000-284600) received from the issuance of common stock on January 21, 2018. The balance of $284600 was liquidated using current assets

Current liabilities
Notes Payable	284600
Long-term debt
Notes Payable refinanced in February 2018	818400