Question

For the long term liabilities section under the balance sheet like bonds payable do you include the full amount or do you subtract the accrued interest and/or current maturity that is in current liabilities? For example if there is a bond payable for 100,000 with current maturity of 25,000 and interest rate of 8% due every October 1st starting this year what would be the long term liabilities section of the balance sheet 12/31?

Answer 1

1. You show it as full amount without subtracting accured interest and/or current maturity that is in current liability. As, accured interest and/or current maturity are due for payment they will be shown as current liability only.

Setting of particular liability or assets with different nature (current // non -current) is not allowed.

The balance of such bond payable will change in case of repayment.

Hence, in this case long term liability will shown as $100,000 as at balance sheet date i.e. 12/31.