Financial statement, balance sheet, liabilities section needs to be broken out between current liabilities and non current liabilities. The concepts is simple; the practice less simple. In concepts, current liabilities are those that will be due within a year. Given this definition we should be able to go through are liabilities, determine which are due in a year, and put them in the current liabilities section. The problem is that some liabilities have a current and long term component. Notes payable or loans payable set up as installment notes often have a current and long term component. We will need to use amortization table do break out the current and long term portion of these notes. We will also discuss different options for reporting installments notes.
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