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 $650,000. 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 $520,000, 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.

Required:

1. Show how the $650,000 notes payable will be classified on Carrboro Textiles balance sheet on December 31, 2019.

CARRBORO TEXTILE COMPANY
Partial Balance Sheet
December 31, 2019
Current Liabilities:
Notes payable	$fill in the blank 3db983092fab06d_1
Long-Term Liabilities:
Notes payable	fill in the blank 3db983092fab06d_2

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