accounting-On December 31, 2015, Sunshine Company had $1,000,000 of short-term debt

QUESTION

On December 31, 2015, Sunshine Company had $1,000,000 of short-term debt in the form of notes payable due February 2, 2016. On January 21, 2016, the company issued 20,000 shares of its common stock for $41 per share, receiving $800,000 proceeds after brokerage fees and other costs of issuance. On February 2, 2016, the proceeds from the stock sale, supplemented by additional $400,000 cash, are used to liquidate the $1,200,000 debt. The December 31, 2015, balance sheet is issued on February 23, 2016. The amount that should be reported as current liabilities on balance sheet as of December 31, 2015, related to this $1,000,000 debt would be:

ANSWER:

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