Short and long-term classification of certain assets and liabilities (Part II)

3. Summary of changes made to current and non-current assets and liabilities

Letís summarize the changes made to the balance sheet to properly reflect the current (short-term) and non-current (long-term) portions of the three items we discussed in this article. The table below shows major balance sheet captions before and after the changes:

 

Before

After

Change

Assets

     

Total current assets

8,924

8,848

(76)

Property, plant and equipment (net)

8,220

8,220

0

Other assets

0

76

76

Total Assets

17,144

17,144

0

       

Liabilities and Stockholder's Equity

     

Total current liabilities

3,853

5,358

1,505

Long-term note payable

3,953

2,315

(1,638)

Other liabilities

0

133

133

Total stockholder's equity

9,338

9,338

0

Total Liabilities and stockholder's equity

17,144

17,144

0

On the assets side, current assets decreased by $76 while other assets (non-current assets) increased by $76. On the liabilities side, current liabilities increased by $1,505, the long-term note payable decreased by $1,638 and other liabilities (non-current liabilities) increased by $133.

Of course, the changes should be evaluated from the materiality standpoint (which is different for different companies), which may or may not actually require making the changes.

Not a member?
See why people join our
online accounting course:
Lecture Contents:
Free Study Notes
Download free accounting study notes by signing up for our free newsletter (example):
First Name:
E-mail:
We never share or sell your e-mail to third parties.
Ask a Question
Suggest a Topic
Do you have an interesting question or topic?
Suggest it to be answered on Simplestudies.com: