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Unformatted text preview: P.340 Sales taxes multiply by the sales tax to determine the total price Divide by sales tax + 1 to determine original price P.345 accounting for contingent liabilities Probable – future event is likely to occur accounting – estimate the amount of the contingency and make the appropriate journal entry, provide detailed disclosure in the notes Reasonably possible – the chance of the future event occurring is more than remote but less than likely accounting – provide detailed disclosure of the possible liability in the notes Remote – the chance of the future event occurring is slight accounting – no disclosure required Capitalize – doing major renovation Property taxes payable – most of the time it based on fiscal year...
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- Summer '11