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.

AssetsLiabilities & Equity
Current Assets:Current Liabilities:
Cash50,000Accounts Payable20,000
Accounts Receivable30,000Short-Term Loans Payable10,000
Prepaid Expenses5,000
Total Current Assets125,000Total Current Liabilities30,000
Non-Current Assets:Non-Current Liabilities:
Property, Plant & Equipment (Net)300,000Long-Term Debt (Bonds Payable)200,000
Intangible Assets50,000
Other Non-Current Assets25,000
Total Non-Current Assets375,000Total Non-Current Liabilities200,000
Total Assets500,000Total Liabilities230,000
Owner's Equity:
Common Stock150,000
Retained Earnings120,000
Total Owner's Equity270,000
Total Liabilities & Owner's Equity500,000Total Liabilities & Owner's Equity500,000

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


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