Chapter 10, Problem 10.7EX

a)

To determine

Long-term debt: Long-term debt refers to the obligation of the company to be paid after one year or one operating cycle whichever is longer. Generally, the long-term debt is reported under the long-term liabilities section of the balance sheet.

Current portion of long-term debt: The amount of debt which would be paid within one year is called as current portion of long-term debt. The current portion of long-term debt is reported as a current liability.

To identify: The amount of long-term debt that was disclosed as a current liability on the current year’s December 31 balance sheet.

b)

To determine

The amount of change in total current liabilities between the preceding year and the current year as a result of the current portion of long-term debt.

c)

To determine

To identify: The amount of total long-term debt on December 31 of the upcoming year.