Chapter 8 - Current Liabilities and Their Recognition

Current vs. Long Term Liabilities

Notes Payable

Recording Notes Payable

Recording Interest Expense and Repayment

Other Current Liabilities

Sales Taxes Payable (Ex.)

Current Maturities of Long-Term Debt (Ex.)

Lines of Credit & Commercial Paper

Employee Payroll Costs

Employer Payroll Costs

Payroll (1)

*Three separate journal entries

Fringe Benefits and Employer Payroll Taxes (2) & (3)

Contingent Liabilities

Accounting for Contingent Liabilities

Contigent Gains

Warranties

Accounting for Warranties

Liquidity Analysis

Working Capital

Current Ratio

Acid-Test Ratio or Quick Ratio

Ending Warranty Balance Formula

Ending Warranty Balance = Expected warranty costs - actual warranty costs