Accounting



Is the current portion of long term debt adjusted monthly?

A monthly adjustment to the current portion of long term debt is necessary when:

1. the company issues monthly balance sheets, and

2. the amount to be paid on a loan’s principal balance during the next 12 months is different from the amount presently shown as a current liability.

The amount reported as a current liability plus the amount reported as a long term liability must be equal to the total amount owed on the debt.

Learn more about the Balance Sheet.

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About the Author: Harold Averkamp (CPA) has worked as an accountant, consultant, and university accounting instructor for more than 25 years.

He is the author of the 2010 Master Accounting Download Package which has been praised for it's ability to simplify accounting in a way that anybody can understand.




Comments

4 Responses to “Is the current portion of long term debt adjusted monthly?”

  1. gellai on November 24th, 2009 6:28 am

    ahMf’plEase give a exAct explAnatiOn and exAmple ..
    thAnkzxs

  2. Tom on November 25th, 2009 5:30 am

    Thanks for this - great for company formations advice

  3. Fotoh Lazarus Elad on December 12th, 2009 10:48 am

    When calculating for Depreciation of asset and it is discovered that an error was made, that is the asset for which depreciation was been calculated for was overstated what adjustments are needed in such a case?

  4. Fotoh Lazarus Elad on December 16th, 2009 10:11 am

    I would like to know the techniques used in recording transactions in a control account.I would like to know when to debit or credit an account in a a control account.

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