intercon company is planning to refinance certain short term obligations on a long term basis. the 2016 financial statements are issued on march 15, 2017.

on december 31, 2016, before reclassification of short-term debt, the liabilities are:

accounts payable 7,000,000

note payable - bank 12,000,000

accrued expenses 4,000,000

mrtgage payable 4,000,000

note payable due on 2018 3,000,000

the entity intends to refinance 9,000,000 of the 12,000,000 bank note payable on long term basis.

although the entire 12,000,000 is due on june 30, 2017, the bank has informally agreed to extend the maturity date for 6,000,000 to june 30, 2018, if necessary.

on january 31, 2017, the entity issued share capital for 4,000,000, net of issue costs and underwriting fees of 500,000.

on february 15, 2017, the entity entered into a financing agreement with a financially capable commercial bank, permitting the entity to borrow up to 3,000,000.

borrowings available at the entity's option on april 1, 2017 will mature 5 years the loan date.

the entity used the entire proceeds of the issue of share capital to retire part of the current note payable and now intended to draw down the entire available commitment of the five-year debt on april 1, 2017.

requirements

1. present the liabilities on december 31, 2016.

2. describe any financial statement disclosures.