On December 31, 2020, Tamarisk Company had $1,260,000 of short-term debt in the form of notes payable due February 2, 2021. On January 21, 2021, the company issued 24,600 shares of its common stock for $39 per share, receiving $959,400 proceeds after brokerage fees and other costs of issuance. On February 2, 2021, the proceeds from the stock sale, supplemented by an additional $300,600 cash, are used to liquidate the $1,260,000 debt. The December 31, 2020, balance sheet is issued on February 23, 2021. Show how the $1,260,000 of short-term debt should be presented on the December 31, 2020, balance sheet. (Enter account name only and do not provide descriptive information.) Tamarisk Company Partial Balance Sheet

The amount of Notes Payable is $300,600

Explanation:

The Balance Sheet (Partial) shown below:

Company T

Balance Sheet (Partial)

At the Year ended on December 31, 2020

Liabilities                                          Amount

Current Liabilities

Notes Payable                                 $300,600

Long term Liabilities

Notes Payable (Refinanced)           $959,400

Working Note:

The amount of notes payable (current liabilities) is computed as:

Notes Payable (Current Liabilities) = Short Term notes payable before refinancing - Proceeds from issue of Common Stock

= $1,260,000 - $959,400

= $300,600

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