Real Estate
Reclassification of Current Portion of Mortgage
Moving the portion of a mortgage due within the next 12 months from long-term to current liabilities.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Mortgage Loan (Long-Term) | Liability (-) | 120,000.00 | - |
| Current Portion of Mortgage | Liability (+) | - | 120,000.00 |
💡 Accountant's Note
At each year-end, the portion of mortgage principal payable within the next 12 months must be presented as a current liability so that the balance sheet accurately shows short-term obligations.
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