Current Portion of Long-Term Debt Connie\'s Bistro, Inc. reported the following

Question

Current Portion of Long-Term Debt Connie's Bistro, Inc. reported the following information about its long-term debt in the notes to a recent financial statement: Long-term debt is comprised of the following: December 31 Current Preceding Year $479,400 $263,700 (139,000) (129,400) $340,400 $134,300 Year Total Notes payable Less current portion Long-term debt a. How much of the notes payable was disclosed as a current liability on the current year's December 31 balance sheet? b. How much did the total current liabilities change the preceding year and the current year as a result of the current portion of long-term debt? c. If Connie's Bistro did not issue additional long-term debt next year, what would be the total notes payable on December 31 of the upcoming year?

Explanation / Answer

a. notes payable disclosed as a current liability current year= 139000

b. change in current liabilities due to change in current portion of long term debt= 139000-129400= 9600 increase

c. total notes payable will be= 340400 as current portion will be paid off in next year, only long term debt portion will remain unpaid as a liability.

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