tailieunhanh - Lecture Accounting principles (12th Edition): Chapter 11 - Weygandt, Kimmel, Kieso

Chapter 11 - Current liabilities and payroll accounting. In this chapter, the learning objectives are: Explain how to account for current liabilities, discuss how current liabilities are reported and analyzed, explain how to account for payroll. | Current Liabilities and Payroll Accounting 11 Learning Objectives Explain how to account for current liabilities. Discuss how current liabilities are reported and analyzed. Explain how to account for payroll. 3 2 1 A debt that a company expects to pay within one year or the operating cycle, whichever is longer. Current liabilities include notes payable, accounts payable, unearned revenues, and accrued liabilities such as taxes payable, salaries and wages payable, and interest payable. LO 1 LEARNING OBJECTIVE Explain how to account for current liabilities. 1 What Is a Current Liability? To be classified as a current liability, a debt must be expected to be paid within: one year. the operating cycle. 2 years. (a) or (b), whichever is longer Question What Is a Current Liability? LO 1 Notes Payable Written promissory note. Frequently issued to meet short-term financing needs. Requires the borrower to pay interest. Issued for varying periods. Current Liabilities LO 1 Illustration: First National Bank agrees to lend $100,000 on September 1, 2017, if Cole Williams Co. signs a $100,000, 12%, four-month note maturing on January 1. Instructions Prepare the entry on September 1st. Prepare the adjusting entry on December 31st, assuming monthly adjusting entries have not been made. Prepare the entry required on January 1, 2018, the maturity date. Notes Payable LO 1 Notes Payable 100,000 Cash 100,000 Interest Payable 4,000 Interest Expense 4,000 $100,000 x 12% x 4/12 = $4,000 b) Prepare the adjusting entry on December 31st. Illustration: First National Bank agrees to lend $100,000 on September 1, 2017, if Cole Williams Co. signs a $100,000, 12%, four-month note maturing on January 1. a) Prepare the entry on September 1st. LO 1 Notes Payable Cash 104,000 Illustration: First National Bank agrees to lend $100,000 on September 1, 2017, if Cole Williams Co. signs a $100,000, 12%, four-month note maturing on January 1, 2018. c) Prepare the entry at maturity. Interest Payable 4,000 . | Current Liabilities and Payroll Accounting 11 Learning Objectives Explain how to account for current liabilities. Discuss how current liabilities are reported and analyzed. Explain how to account for payroll. 3 2 1 A debt that a company expects to pay within one year or the operating cycle, whichever is longer. Current liabilities include notes payable, accounts payable, unearned revenues, and accrued liabilities such as taxes payable, salaries and wages payable, and interest payable. LO 1 LEARNING OBJECTIVE Explain how to account for current liabilities. 1 What Is a Current Liability? To be classified as a current liability, a debt must be expected to be paid within: one year. the operating cycle. 2 years. (a) or (b), whichever is longer Question What Is a Current Liability? LO 1 Notes Payable Written promissory note. Frequently issued to meet short-term financing needs. Requires the borrower to pay interest. Issued for varying periods. Current Liabilities LO 1 Illustration: First .