The accounting problem is next. I did answer part for March 31, but am confused as to what long term debt is. Please help and thanks for any solution! Here is the problem:

2. Notes payable. Sentry Security Systems purchased $72,000 of office equipment on April 1, 19X3, by signing a three-year, 12% note payable to Sharp, Inc. One-third of the principal, along with interest on the outstanding balance, is payable each April 1 until maturity. (The first payment is due in 19X4.)
a. Fill in the following table to reflect Sentry's liabilities, assuming a March 31 year-end.

March 31
19X4 19X5 19X6
Current liabilities $80,640
Current portion of long-term debt 32,640
Interest payable 8,640
Long-term liabilities
Long-term debt

b. Assuming that interest is properly recorded at the end of each year, present the proper journal entry to record the last payment on April 1, 19X6.

Long term debt is that part of the debt payable beyond twelve months from balance date you are given the current balance

Quote:

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Originally Posted by paraclete

long term debt is that part of the debt payable beyond twelve months from balance date you are given the current balance

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