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 $$600,000.$ These notes were due on June $1,2020.$ Carrboro expected to refinance these notes on a long$-$term basis. On February $1,2020,$ Carrboro entered into an agreement with Worldwide Life Insurance Company whereby Worldwide will lend Carrboro $$480,000,$ 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 $2,2020.$

Show how the $$600,000$ notes payable will be classified on Carrboro Textile's balance sheet on December $31,2019.$

$\backslash$table$[[$CARRBORO TEXTILE COMPANY$],[$Partial Balance Sheet$],[$December $31,2019]]$

Current Liabilities:

Notes payable

Long$-$Term Liabilities:

Notes payable

$2.$ If short$-$term debt that is expected be refinanced is classified as a long$-$term liability the company has shown refinance at which point it is to classify the obligation as a long$-$term liability.