Hello Community,
I'm wondering if anyone can help out with a couple of questions that are dogging me for a financial accounting assignment (1st. year Univ.).
1 - When reclassifying long term debt to the current portion of long term debt in the journal, is it an adjusting entry done at the end of the accounting period for current portion of long term debt due in the next year? Also, would this transaction mean that you debit long term debt and credit current portion of long term debt?
2 - If unearned revenue is often considered a current liability, am I to assume that unearned revenue in the previous year's balance sheet will always be adjusted in the current year if it is stated generally that revenue was earned in the current period.
Any help you can offer me on these topics would be greatly appreciated.
Thanks, Trish
I'm wondering if anyone can help out with a couple of questions that are dogging me for a financial accounting assignment (1st. year Univ.).
1 - When reclassifying long term debt to the current portion of long term debt in the journal, is it an adjusting entry done at the end of the accounting period for current portion of long term debt due in the next year? Also, would this transaction mean that you debit long term debt and credit current portion of long term debt?
2 - If unearned revenue is often considered a current liability, am I to assume that unearned revenue in the previous year's balance sheet will always be adjusted in the current year if it is stated generally that revenue was earned in the current period.
Any help you can offer me on these topics would be greatly appreciated.
Thanks, Trish