Chapter 9- powerpoint-class

Chapter 9- powerpoint-class - CHAPTER 9 Reporting and...

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Reporting and Analyzing Current Liabilities C H A P T E R 9
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Past Present Future Defining Liabilities Because of a past event . . . The company has a present obligation . . . For future sacrifices
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Expected to be paid within one year or the company’s operating cycle, whichever is longer. Classifying Liabilities Current Liabilities Expected not to be paid within one year or the company’s operating cycle, whichever is longer. Long-Term Liabilities
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Accounts Payable Sales Taxes Payable Unearned Revenues Short-Term Notes Payable Known (Determinable) Liabilities Payroll Liabilities Multi-Period Known Liabilities
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On March 15, 2008, Apex Inc sold merchandise for $8,000 that is subject to a 7% sales tax. Sales Taxes Payable
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During the month of March 2007, Pop’s Convenience Store recorded total sales receipts of $2,675, which included a 7% Sales Tax. What is their Sales Revenue and Sales Tax Payable for the month? Computing Sales Tax from Total Receipts
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Unearned Revenues On November 1, 2007, State Insurance received a customer check for $2,400 in advance for 6 months’ insurance premium on a policy that goes into effect immediately. Record the relevant journal entries for 2007 (assume accounting period ends on December 31)
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A written promise to pay a specified amount on a definite future date within one year or the company’s operating cycle, whichever is longer. Short-Term Notes Payable
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On July 1, 2007, Conner, Inc. asked Tyler Co. to accept a 90- day, 12% note to replace its existing $4,000 account payable to Tyler. Record all relevant journal entries: Note Given to Extend Credit Period
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Note Given to Borrow from Bank PROMISSORY NOTE Face Value Date after date promise to pay to the order of American Bank Athens, GA  Dollars plus interest at the annual rate of . $10,000 Aug 1, 2007 Ninety days I Ten thousand and no/100 - - - - - - - - - - - - - - - - - 6% Bulldog  Company
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Face Value Equals Amount Borrowed On August 1, 2007, Bulldog Company borrows $10,000 from American Bank by signing a 90-day, 6% note. Principal and interest are due on October 30, 2007.
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Note Date End of Period Maturity Date An adjusting entry is required to record Interest Expense incurred to date.
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