Company N has a 5-year note payable that will mature (come due)on March 17,2012.Company N has an agreement with a local bank to refinance the liability by issuing a new note payable.On its December 31,2011 balance sheet,N should

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The note payable should be reported as a long-term liability because it is not due until March 17, 2012, which is more than a year away. The fact that the company has an agreement with a local bank to refinance the liability does not change the fact that it is currently a long-term liability.

Company N Has a 5-Year Note Payable That Will Mature