On December 31, 2021, Alexander AG had €1,200,000 of short-term debt in the form of notes payable due February 2, 2022. On January 21, 2022, the company issued 25,000 ordinary shares for €36 per share, receiving €900,000 proceeds after brokerage fees and other costs of issuance. On February 2, 2022, the proceeds from the share sale, supplemented by an additional €300,000 cash, are used to liquidate the €1,200,000 debt. The December 31, 2021, statement of financial position is authorized for issue on February 23, 2022.

Instructions

Show how the €1,200,000 of short-term debt should be presented on the December 31, 2021, statement of financial position.