he controllers of Metlock, Inc. and Bridgeport Corp. both ask you whether their companies can reclassify short-term obligations as long-term. Here are the facts surrounding both companies short-term debt.

On December 31, 2017, Metlock, Inc. has $1,600,000 of short-term debt in the form of notes payable to Michaels State Bank due February 5, 2018. On January 28, 2018, Metlock issued 16,000 shares of common stock at $75 per share. Metlock used the proceeds of $1,200,000 from the stock issuance, along with $520,000 in cash to retire the short-term debt and associated accrued interest on February 5, 2018. Metlock will issue its December 31, 2017 financial statements on February 25, 2018.

Prepare partial balance sheets for Metlock, Inc. and Bridgeport Corp. at December 31, 2017, showing how both companies short-term debt should be presented