On December 31, 2010, Carrboro Textile Company had short-term debt in the form of notes payable totaling

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On December 31, 2010, Carrboro Textile Company had short-term debt in the form of notes payable totaling $600,000. These notes were due on June 1, 2011. Carrboro expected to refinance these notes on a long-term basis. On February 1, 2011, Carrboro entered into an agreement with Worldwide Life Insurance Company whereby Worldwide will lend Carrboro $450,000, payable in five years at 12%. The money will be available to Carrboro on May 20, 2011. Carrboro issues its December 31, 2010 year-end financial statements on March 2, 2011.

Required
Show how the $600,000 notes payable will be classified on Carrboro Textile Company's balance sheet on December 31, 2010.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Intermediate Accounting

ISBN: 978-0324659139

11th edition

Authors: Loren A. Nikolai, John D. Bazley, Jefferson P. Jones

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