This preview shows page 1. Sign up to view the full content.
Unformatted text preview: tution for amount of money
by the business.
a.4 Utilities Payable – is a liability to pay utility
companies like PLDT, MERALCO, and MWSS
a.5 Interest Payable – interest due on promissory
notes issued. A. CURRENT LIABILITIES
a.6 Salaries Payable – unpaid salaries as of end of
a.7 Unearned Income – revenue collected but not
yet earned. Meaning, the services has not yet
been rendered or the goods has not been
a.8 Accrued Expenses – expense incurred but not
paid as of end of accounting period.
paid B. NON-CURRENT LIABLITIES
Long term liabilities or obligations which are payable
longer than one year
a. Notes Payable – long terms debts and obligations
to creditors supported by a supported by a
promissory b. Bonds Payable – long term obligation which are
evidenced by bonds issued to investors.
evidenced B. NON-CURRENT LIABLITIES
c. Mortgage Payable – are long term obligation which are
supported by collateral on real property.
supported 3. OWNER’S EQUITY
Ownership claim on total assets. It is often
referred to as the “Residual Equity”
Owner’s Equity = Assets-Liabilities
Owner’s Increases in Owner’s Equity
(1) Investment by the Owner – these are the assets that
the owner put into the...
View Full Document
- Spring '12