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The remaining $300,0 is not due until after one year. How is the mortgage shown on the balance sheet?1. As a current liability of $420,02. As a long-term liability of $420,03. As another liability of $420,0 with a footnote breaking out current and long-term portions4. As a current liability of $120,0 and a long-term liability of $300,05. As a disclosure item only
Current portion of long-term liability120,0
Long-term liability300,0
In the finanical statement it will be shown as
Current liability ( current portion of long term liability) $120
Long term liability $300.
with an explanation of this treatment in the Notes to the financial statment..
4. identifying long terrm and current portion separately
Answe is No.4
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