Accounting 10 - Chapter 10 Study Objective 3 Brief...

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Click to edit Master subtitle style 4/7/11 Chapter 10 Study Objective 3 Brief Exercises 5 & 6 ShaTasha Harris Baron Brown
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4/7/11 Study Objective 3 Explain the accounting for other current liabilities.
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4/7/11 Sales Tax Some companies are required to ring up purchases separately from sales tax as shown on your receipt. When the company remits the taxes to the taxing agency, it decreases (debits) Sales Taxes Payable and decreases (credits) Cash. The company does not report sales taxes as an expense; it simply forwards to the government the amount paid by the customer.
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4/7/11 Mar. 25 Cash 10,600 Sales 10,000 Sales Taxes Payable 600 (To record daily sales and sales taxes)
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4/7/11 UNEARNED REVENUES When the company receives an advance, it increases (debits) Cash and also increases (credits) a current liability account identifying the source of the unearned revenue. When the company earns the revenue, it decreases (debits) the unearned revenue account and increases (credits) an earned revenue account.
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4/7/11 U.R. for Various Companies
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4/7/11 To illustrate, assume that Superior University sells 10,000 season football tickets at $50 each for its five-game home schedule.
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This note was uploaded on 04/06/2011 for the course ACCT 2101 taught by Professor Bhan during the Summer '07 term at University of Georgia Athens.

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Accounting 10 - Chapter 10 Study Objective 3 Brief...

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