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In double-entry accounting it's the same basic entry for all liabilities, the accounts used will vary depending on the type of liability in which you may be referencing.
I'll give a couple examples so that hopefully it will help. Company X purchases a computer on account, the amount the company owes is now a liability. To record this purchase a debit is made to Equipment and a credit is made to accounts (or notes) payable.
Remember, all liabilities have a credit balance, therefore when entering a liability, there is a credit to the liability and a debit to another account.
A company borrows money from a bank and signs a note, the debit is for the cash received and the credit is for the note payable (the liability)
A company owes their employee's wages but does not intend to pay the wages until a later date, what they now owe is a liability. A debit to Wage Expense is made with a credit to Wages Payable.
*note, a long term liability is still a liability, the difference between a long-term and a current liability is only the time in which the debt (or liability) will be fully paid off. The entry is the same for both.
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Is it true all long term liabilties become current liabilities?
Long term liability becomes the current liability in that year in which it is to be cleared so Yes, long term liability become current liability.
Is long term debt an operating liability?
NO. But the Current maturities of long-term debt is an operating liability.
Is Demand loan a current liability or a long term liability?
a current liability
Is a loan is current liability or long term liability in the balance sheet?
If loan is payable within twelve month of issuance of loan then it is current liability but if it is payable in more than one fiscal year then it is long term liability but even in long term loan, that portion of loan which is payable in current fiscal year is current liability and remaining portion is long term liability.
Are billings in excess of cost a current liability or long term liability?
Yes it is a current liability
Is subordinated capital notes a current liability or a long term liability?
Long term
Is it true all long term liabilties become current liabilities?
Long term liability becomes the current liability in that year in which it is to be cleared so Yes, long term liability become current liability.
Is long term debt an operating liability?
NO. But the Current maturities of long-term debt is an operating liability.
Is Demand loan a current liability or a long term liability?
a current liability
Is a loan is current liability or long term liability in the balance sheet?
If loan is payable within twelve month of issuance of loan then it is current liability but if it is payable in more than one fiscal year then it is long term liability but even in long term loan, that portion of loan which is payable in current fiscal year is current liability and remaining portion is long term liability.
Are billings in excess of cost a current liability or long term liability?
Yes it is a current liability
Is salaries payable a long term liability?
No, Its not a long term liability, since it will be paid in the same month the expenes is booked or the next month
Examples of a long term liability?
Mortgage
1 A liability is classified as a current liability if it is to be paid within the coming year?
Yes current liability is that liability which is payable within one fiscal year otherwise it is that portion of long term liability which is payable within one year remaining portion will be long term liability.
What is the purpose of reporting current maturities of long term debt?
Purpose to report is to show that how much portion of long term debt will be paid or payable in current accounting year that's why that portion became current liability and not long term liability.
An unfunded pension liability is reported on the balance sheet as?
current liability or long-term liability, depending upon when the pension liability is to be paid
Is long term notes payable current liability?
no
