Question

According to current 10-K, how much is considered current maturity of this long term debt for the current year?

In Millions	How much is considered current maturity of this long term debt for the current year?
Home Depot
Lowe's

Answer 1

Current portion explanation and it's calculation:

Long term debt means the liability which occurs for more than one year say 2 years or more. This will include the portion to be paid in this year along with principal and interest which is known as the current portion of the long term debt

Long term debt is a long term liability whereas the current portion of the long term debt acts as a current liability

Yearly interest plus principal is considered to pay for the current portion of the long term debt

Journal entries recorded when this current portion of long term debt occurs:

1. Note payable a/c dr

to Notepayable-short term a/c

(Being the Note payable raised)

This will decrease the long term debt for one year

2. Notepayable a/c dr.

to Cash a/c

(Being Note payable paid out)

This will decrease the cash in the orgnization.