The 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.

Bridgeport Corp. On December 31, 2017, Bridgeport Corp. has $2,400,000 of short-term notes payable to Indiana Bank & Trust. The notes are due on January 31, 2018. Bridgeport retired the notes, along with $160,000 in accrued interest, in full on January 31, 2018. On February 11, 2018, Bridgeport obtained $3,600,000 in long-term financing from Terre Haute Bank & Trust. The new debt bears interest at 5 percent, with interest payments due annually. Bridgeport will issue its December 31, 2017 financial statements on February 28, 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.