ACC151Chapter 9

ACC151Chapter 9 - Chapter 9: Accounting for Liabilities...

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

View Full Document Right Arrow Icon
Chapter 9: Accounting for Liabilities CLASSIFYING LIABILITIES Current Liabilities: paid within one year or the company’s operating cycle (whichever is longer) Long-Term Liabilities: not paid within one year or company’s operating cycle (whichever is longer) UNKNOWN LIABLITIES Uncertainty in whom to pay Uncertainty in when to pay Uncertainty in how much to pay KNOWN LIABLITILES Accounts Payable, Sales Taxes Payable, Unearned Revenues, Short-Term Notes Payable, Payroll Liabilities, Multi- Period Known Liabilities SALES TAXES PAYABLE On May 15, 2011, Max Hardware sold building materials for $7,500 that are subject to a 6% sales tax. Sales Tax: 7,500 x 6% = $450 5/15 Cash 7,950 Sales 7,500 Sales Tax Payable 450 To Record Sale UNEARNED REVENUES On May 1, 2011, A-1 Catering received $3,000 in advance for catering a wedding party to take place on July 12, 2011. Works like a deposit 5/1 Cash 3,000 Unearned Revenue 7,500 To Record Unearned Revenue 5/1 Unearned Revenue 3,000 Catering Revenue 3,000 To Record Earning Revenue NOTES RECEIVABLE If you have a note that crosses over a period you will have to accrue some sort of interest. PAYROLL LIABILITIES
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 02/22/2012 for the course ACC 151 taught by Professor Franklin during the Fall '08 term at Syracuse.

Page1 / 3

ACC151Chapter 9 - Chapter 9: Accounting for Liabilities...

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