Question

# Current Portion of Long-Term Debt Connie's Bistro, Inc., reported the following information about its long-term debt...

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 Year Preceding Year Total long term-debt \$377,900 \$207,800 Less current portion (109,600) (102,000) Long-term debt \$268,300 \$105,800

a. How much of the long-term debt was disclosed as a current liability on the current year’s December 31 balance sheet?
\$

b. How much did the total current liabilities change between the preceding year and the current year as a result of the current portion of long-term debt?
\$ Increase

c. If Connie's Bistro did not issue additional long-term debt next year, what would be the total long-term debt on December 31 of the upcoming year?
\$

Solution a:

Long-term debt disclosed as a current liability on the current year’s December 31 balance sheet = Current portion of Long term debt = \$109,600

Solution b:

Change in Total current liabilities between the preceding year and the current year = \$109,600 - \$102,000 = \$7,600

Solution c:

Current portion of Long Teram debt will be paid in upcoming year i.e. 109,600

Therefoer, Total long-term debt on December 31 of the upcoming year = Total Long Term Debt Current year - Current portion of long term debt which will be paid off in upcoming year = \$377900 - 109600 = \$268,300

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