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The current portion of long-term debt is usually broken out to an a liability account known as Current Portion-Long Term Debt. This is usually for a 12-month period.
Using the amortization schedule for the loan, debit the long-term note account for the 12 month period of principal and credit the short-term liability account. Then when the payment is made, debit the principal to the short-term account and the interest to interest expense.
What else can I help you with?
Current maturities of long-term debt?
Current maturities of long term debt means that portion of debt which is payable in current fiscal year.
Is long term debt an operating liability?
NO. But the Current maturities of long-term debt is an operating liability.
Current maturity Of Long-Term Debt?
Current maturity of long-term debt is the amount which is liable to pay in current fiscal year Example: Long-term loan payable in 10 years = 10000 Current portion of loan payable in current year = 1000 Remaining portion payable in next 9 year = 9000 is the long-term debt payable
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.
The current portion of long-term debt should?
be reclassified as a current liability
What is the current portion of long-term debt classified?
The current portion of long-term debt is classified with the ____
Current maturities of long-term debt?
Current maturities of long term debt means that portion of debt which is payable in current fiscal year.
Is long term debt an operating liability?
NO. But the Current maturities of long-term debt is an operating liability.
What is the formula of the CPRP?
Formula to calculate CPRP: CPRP = Cost Of Rate Per 30 Minutes/ Rating Point Of That Time Band
Current maturity Of Long-Term Debt?
Current maturity of long-term debt is the amount which is liable to pay in current fiscal year Example: Long-term loan payable in 10 years = 10000 Current portion of loan payable in current year = 1000 Remaining portion payable in next 9 year = 9000 is the long-term debt payable
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.
The current portion of long-term debt should?
be reclassified as a current liability
Is long term debt plus current liabilities equal total debt?
Yes all kinds of debts like long term plus current liabilities is part of total debt or total liabilities.
Does long term debt and short term portion of long term debt include interest?
No. Only the current amount of interest due and/or accrued is shown as Interest Payable under Current Liabilities.
What is the current portion of long term debt classified with?
liabilities
Would any part of a 5-year auto loan be considered a current liability?
The portion of payments due in the current period (1 yr) are considered the current portion of long term debt; the remainder would be considered long term debt, though this is difficult to justify, given that auto loans are consumer debt - that is debt that is not tax deductable. The portion of payments due in the current period (1 yr) are considered the current portion of long term debt; the remainder would be considered long term debt, though this is difficult to justify, given that auto loans are consumer debt - that is debt that is not tax deductable.
All long-term debt maturing within the next year must be classified as a current liability on the balance sheet?
Yes. Usually separated and called "Current Portion of Long-Term Debt"
