E13-3B (Refinancing of Short-Term Debt) On December 31, 2014, Hernandez Company had $3,000,000 of short-term debt in the form of notes payable due February 2, 2015. On January 21, 2015, the company issued 50,000 shares of its common stock for $50 per shar

E13-3B (Refinancing of Short-Term Debt) On December 31, 2014, Hernandez Company had $3,000,000 of short-term debt in the form of notes payable due February 2, 2015. On January 21, 2015, the company issued 50,000 shares of its common stock for $50 per share, receiving $2,500,000 proceeds after brokerage fees and other costs of issuance. On February 2, 2015, the proceeds from the stock sale, supplemented by an additional $500,000 cash, are used to liquidate the $3,000,000 debt. The December 31, 2014, balance sheet is issued on February 23, 2015.

Instructions

Show how the $3,000,000 of short-term debt should be presented on the December 31, 2014, balance sheet,

including note disclosure.