Accounting Ch7 part 2

Accounting Ch7 part 2 - Most employers are also subjected...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Most employers are also subjected to federal and state payroll taxes based on the amount of compensation paid to their employees. L: (+Payroll Taxes Payable), E: (-Payroll Tax Expense). Other Accrued Liabilities: accrued property taxes, accrued interest, estimated warranty liabilities, and other accrued expenses such as advertising and insurance obligations. Ex: tax bills for one year not issued until April the following year, payable in July: L: (+Property Taxes Payable), E: (-Property Tax Expense). When bill is received in April, payable account must be adjusted. Ex: Warranties: Fiscal period in which product is sold: L: (+Estimated Warranty Liability), E: (-Warranty Expense); Fiscal period in which warranty is honored: A: (-Cash and/or repair parts inventory), L: (-Estimated Warranty Liability) A corporation’s capital structure is the mix of debt and owner’s equity that is used to finance the acquisition of the firm’s assets. For many nonfinancial firms, long-term debt accounts for up to half of the firm’s
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/02/2011 for the course ACCT 502 taught by Professor Jaggi during the Fall '10 term at Rutgers.

Page1 / 2

Accounting Ch7 part 2 - Most employers are also subjected...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online