Chapter 2 - A Further Look at Financial Statements - Exercises - Page 79: E2-6

Classified Balance Sheet Total = $13,930 Note that in this case closing retained earnings balance is given. Therefore, there is no need to prepare profit and loss account separately

All amount of the notes payable in this case belong to year 2007. Since we are preparing balance sheet as at 31 Dec 2006, all notes payable will therefore be considered as current liabilities.