On July 1, 2013, Avery Services issued a long-term note payable for $10,000. It is payable over a 5-year term in $2,000 installments on July 1 of each succeeding year. When the note was issued, the principal amount was initially recorded in Long-term notes payable. In addition, a second entry was made to reclassify the current portion. Please provide the journal entry needed for that reclassification.

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The Answer of On July 1, 2013, Avery Services issued a long-term note payable for $10,000. It is payable over a 5-year term in $2,000 installments on July 1 of each succeeding year. When the note was issued, the principal amount was initially recorded in Long-term notes payable. In addition, a second entry was made to reclassify the current portion. Please provide the journal entry needed for that reclassification.

On July 1, 2013, Avery Services Issued a Long-Term Note