- Download the worksheet to save time writing
- Start solving the practice problems
- If you're stuck, watch the video solutions
- See your summary to get more insights
What is the effect on the accounting equation when \$8,000 of long-term debt is reclassified as current liabilities?
Which journal entry correctly reclassifies \$5,000 of long-term debt to current liabilities?
If a company repays \$15,000 of principal annually on a \$150,000 loan with a 12% interest rate, how does this affect the interest expense in the third year?
If a company repays \$20,000 of principal annually on a \$200,000 loan with a 5% interest rate, how does this affect the interest expense in the fourth year?
XYZ Corporation has a long-term debt of \$200,000 with annual principal repayments of \$20,000. How much should be reclassified as current liabilities at the end of the year?
In the context of a note payable, how are principal and interest treated differently?
How are principal and interest reported in the context of a note payable?
Which journal entry correctly reclassifies \$7,000 of long-term debt to current liabilities?
A company has an outstanding principal of \$50,000 with an interest rate of 8%. What is the annual interest expense?
A company has a \$300,000 loan with a 6-year term and annual repayments of \$50,000. How would this be reported on the balance sheet at the end of the second year?