QuestionJune 3, 2025

2.) A dental organization has 725,000 as an outstanding loan, for which the principal must be paid at the rate of 150,000 for the next 5 years.In the balance sheet, what would be the current portion of long-term debt and what is the remaining debt?

2.) A dental organization has 725,000 as an outstanding loan, for which the principal must be paid at the rate of 150,000 for the next 5 years.In the balance sheet, what would be the current portion of long-term debt and what is the remaining debt?
2.) A dental organization has 725,000 as an outstanding loan, for which the principal must be paid at the rate of
 150,000
for the next 5 years.In the balance sheet, what would be the current portion of long-term debt and what is the
remaining debt?

Solution
3.3(253 votes)

Answer

Current Portion: 150,000; Remaining Debt: 575,000. Explanation 1. Calculate the Current Portion of Long-term Debt The current portion is the amount due within one year. Since the principal payment is 150,000 per year, the current portion is 150,000. 2. Calculate the Remaining Debt After One Year Subtract the current portion from the total outstanding loan: 725,000 - 150,000 = 575,000.

Explanation

1. Calculate the Current Portion of Long-term Debt<br /> The current portion is the amount due within one year. Since the principal payment is $150,000 per year, the current portion is $150,000.<br /><br />2. Calculate the Remaining Debt After One Year<br /> Subtract the current portion from the total outstanding loan: $725,000 - $150,000 = $575,000.
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