Short$-$Term Debt Expected to Be Refinanced

On December $31,$ Year $1,$ Carrboro Textile Company had short$-$term debt in the form of notes payable totaling $$600,000.$ These notes were due on June $1,$ Year $2.$ Carrboro expected to refinance these notes on a long$-$term basis. On February $1,$ Year $2,$ Carrboro entered into an agreement with Worldwide Life Insurance Company whereby Worldwide will lend Carrboro $$450,000,$ payable in $5$ years at $12\%.$ The money will be available to Carrboro on May $20,$ Year $2.$ Carrboro issues its December $31,$ Year $1,$ year$-$end financial statements on March $2,$ Year $2.$

Required:

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$1.$ Show how the $$600,000$ notes payable will be classified on Carrboro Textile's balance sheet on December $31,$ Year $1.$