[Solved] Long Term Debt in Balance Sheet Example

 Welcome back to our blog today we are going to solve a long-term debt in a balance sheet example so if you are an accounting student then you should read this article till the end.

What is long-term debt in the balance sheet?

Now let's start with the definition:-

 Long-term debt refers to the financial obligations or liabilities that a company owes and is due for repayment over a period exceeding one year. It includes loans, bonds, mortgages, or any other form of borrowing that extends beyond the next 12 months from the balance sheet date.

long term debt in balance sheet Example 

Now let's check a long-term debt in the balance sheet to understand.

Assets		Liabilities & Equity
Current Assets:		Current Liabilities:
Cash	50,000	Accounts Payable	20,000
Accounts Receivable	30,000	Short-Term Loans Payable	10,000
Inventory	40,000
Prepaid Expenses	5,000
Total Current Assets	125,000	Total Current Liabilities	30,000
Non-Current Assets:		Non-Current Liabilities:
Property, Plant & Equipment (Net)	300,000	Long-Term Debt (Bonds Payable)	200,000
Intangible Assets	50,000
Other Non-Current Assets	25,000
Total Non-Current Assets	375,000	Total Non-Current Liabilities	200,000
Total Assets	500,000	Total Liabilities	230,000
Owner's Equity:
Common Stock	150,000
Retained Earnings	120,000
Total Owner's Equity	270,000
Total Liabilities & Owner's Equity	500,000	Total Liabilities & Owner's Equity	500,000

In this example, the company has total liabilities and owner's equity of 500,000, which equals the total assets, reflecting the balance sheet's fundamental equation of Assets = Liabilities + Owner's Equity

Conclusion

I hope you understand how to show long-term debt in a balance sheet for more examples please check our blog continuously.