On december 31 2010 carrboro textile company had short term


On December 31, 2010, Carrboro Textile Company had short term debt in the form of notes payable totaling $600,000. These notes were due on June 1, 2011. Carrboro expected to refinance these notes on a long term basis. On February 1, 2011, Carrboro entered into an agreement with Worldwide Life Insurance Company whereby Worldwide will lend Carrboro $450,000, payable in five years at 12%. The money will be available to Carrboro on May 20, 2011. Carrboro issues its December 31, 2010 year end financial statements on March 2, 2011.

Required:
Show how the $600,000 notes payable will be classified on Carrboro Textile Company's balance sheet on December 31, 2010.

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Accounting Basics: On december 31 2010 carrboro textile company had short term
Reference No:- TGS01157256

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