On december 31, 2020, mcdaniel company had $1,200,000 of short-term debt in the form of notes payable due february 2, 2021. on january 21, 2021, the company issued 25,000 shares of its common stock for $38 per share, receiving $950,000 proceeds after brokerage fees and other costs of issuance. on february 2, 2021, the proceeds from the stock sale, supplemented by an additional $250,000 cash, are used to liquidate the $1,200,000 debt. the december 31, 2020, balance sheet is issued on february 23, 2021.

show how the $1,200,000 of short-term debt should be presentedon the december 31, 2020, balance sheet.