m Accounting: Reporting and Print Search Annotations Egaly Short-Term Debt Expected to Be Refinanced Accessibility Bookmark LO 9.3 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: 1. Show how the $600,000 notes payable will be classified on Carrboro Textile's balance sheet on December 31, Year 1. 2. Next Level What is necessary in order for a company to exclude short- term debt that is expected to be refinanced on a long-term basis from the current liability classification? e m. th ite

LO 9.3 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, yearend financial statements on March 2, Year 2. REQUIRED: 1. Show how the $600,000 notes payable will be classified on Carrboro Textile's balance sheet on December 31, Year 1. 2. Next Level What is necessary in order for a company to exclude shortterm debt that is expected to be refinanced on a long-term basis from the current liability classification