Accounting Categories (Debit and Credit Balances) - Financial Accounting (FAC)
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Hanzehogeschool Groningen (Hanze)
International Business and Management Studies
FAC2
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Current Liabilities
Chapter Number Chapter 10
📖 Table of Contents
Outline
10.1 Accounting for Current Liabilities
Notes Payable
Issuing an interest-bearing note
Accrual of interest
Recording payment at Maturity
Value-Added and Sales Taxes Payable
Value-Added Taxes Payable
Sales Taxes Payable
Unearned Revenues
Recording the receiving of the advance payment
Recognising the Revenue
Salaries and Wages
Payroll Deductions
Current Maturities of Long-Term Debt
10.2 Reporting and Analyzing Current Liabilities
Reporting Uncertainty (Provisions)
Recognition of a Provision
Reporting a Provision
Reporting of Current Liabilities
Analysis of Current Liabilities
Current Liabilities 1
, 10.1 Accounting for Current Liabilities
The different types of current liabilities include:
notes payable
accounts payable
unearned revenues
accrued liabilities
taxes
salaries and wages
interest payable
Notes Payable
assume that First Hunan Bank agrees to lend ¥100,000 on September 1, 2020, if Yang
Enterprises signs a ¥100,000, 12%, four-month note maturing on January 1 (amounts in
thousands).
Issuing an interest-bearing note
Accrual of interest
Interest = Note Face Value ∗ Annual Interest Rate ∗ Time in Terms of 1 Year
4
¥100, 000 ∗ 0.12 ∗ = ¥4, 000
12
statement of financial position
→ notes payable ¥100,000
Current Liabilities 2
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