Question: Short - Term Debt Expected to Be Refinanced On December 3 1 , 2 0 1 9 , Carrboro Textile Company had short - term

Short-Term Debt Expected to Be Refinanced On December 31,2019, Carrboro Textile Company had short-
term debt in the form of notes payable totaling $600,000. These notes were due on June 1,2020. Carrboro
expected to refinance these notes on a long-term basis. On February 1,2020, Carrboro entered into an agreement
with Worldwide Life Insurance Company whereby Worldwide will lend Carrboro $450,000, payable in 5 years at
12%. The money will be available to Carrboro on May 20,2020. Carrboro issues its December 31,2019, year-end
financial statements on March 2,2020.
Required:
Show how the $600,000 notes payable will be classified on Carrboro Textile's balance sheet on December 31,2019.
Short-Term Debt Expected to Be Refinanced On December 31,2019, Carrboro Textile

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