The controllers of Kingbird, Inc. and Ayayai 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. Kingbird, Inc. On December 31, 2017, Kingbird, Inc. has $2,400,000 of short-term debt in the form of notes payable to Michaels State Bank due February 5, 2018. On January 28, 2018, Kingbird issued 24,000 shares of common stock at $75 per share. Kingbird used the proceeds of $1,800,000 from the stock issuance, along with $780,000 in cash to retire the short-term debt and associated accrued interest on February 5, 2018. Kingbird will issue its December 31, 2017 financial statements on February 25, 2018. Ayayai Corp. On December 31, 2017, Ayayai Corp. has $3,600,000 of short-term notes payable to Indiana Bank & Trust. The notes are due on January 31, 2018. Ayayai retired the notes, along with $240,000 in accrued interest, in full on January 31, 2018. On February 11, 2018, Ayayai obtained $5,400,000 in long-term financing from Terre Haute Bank & Trust. The new debt bears interest at 5 percent, with interest payments due annually. Ayayai will issue its December 31, 2017 financial statements on February 28, 2018. Prepare partial balance sheets for Kingbird, Inc. and Ayayai Corp. at December 31, 2017, showing how both companies short-term debt should be presented, including footnote disclosures. (Enter account name only and do not provide descriptive information.)

all the info already filled in are correct.

Kingbird, Inc. Partial Balance Sheet December 31, 2017 Current Liabilities Notes Payable 600000 Long-term Debt Notes Payable Ayayai Corp. Partial Balance Sheet December 31, 2017 Current Liabilities Notes Payable 3600000