Current Maturities of Long

Current Maturities of Long - often identify current...

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Current Maturities of Long-Term Debt Companies often have a portion of long-term debt that comes due in the current year. As an example, assume that Wendy Construction issues a five-year, interest-bearing $25,000 note on January 1, 2009. This note specifies that each January 1, starting January 1, 2010, Wendy should pay $5,000 of the note. When the company prepares financial statements on December 31, 2009, it should report $5,000 as a current liability and $20,000 as a long-term liability. Companies
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Unformatted text preview: often identify current maturities of long-term debt on the balance sheet as long-term debt due within one year . At December 31, 2007, General Motors had $1,893 million of such debt. It is not necessary to prepare an adjusting entry to recognize the current maturity of long-term debt. At the balance sheet date, all obligations due within one year are classified as current, and all other obligations are classified as long-term. before you go on. .. Do it! Current Liabilities...
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Current Maturities of Long - often identify current...

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