Short-Term Debt Expected to Be Refinanced On December 31, 2007 Excello Electric Company had $1 million of

Question:

Short-Term Debt Expected to Be Refinanced On December 31, 2007 Excello Electric Company had $1 million of short-term notes payable due February 7, 2008. Excello expected to refinance these notes on a long-term basis. On January 15, 2008 the company issued bonds with a of $900,000 at 98; brokerage fees and other costs of issuance were $3,450. On January 22, 2008 the proceeds from the bond issue plus additional cash held by the company on December 31, 2007 were used to liquidate the $1 million of short-term notes. The December 31, 2007 is issued on February 12, 2008.

Required
Prepare a partial as of December 31, 2007 showing how the $1 million of short-term notes payable should be disclosed. Include an appropriate footnote for proper disclosure.

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