会计英语 第四版 叶建芳07课件.ppt

Lesson 7;The Nature of Liabilities;Distinction Between Debt and Equity;Accounts Payable;Notes Payable;Notes Payable;Notes Payable;Interest expense is the compensation to the lender for giving up the use of money for a period of time. The liability is called interest payable. To the lender, interest is a revenue. To the borrower, interest is an expense.;What entry would Porter Company make on December 31, the fiscal year-end?;Interest PayableExample;Payroll Liabilities;Personal in come Taxes;Earned revenue is recorded.;Deferred Income Taxes;The difference between tax expense and tax payable is recorded in an account called deferred taxes.;Examine the December 31, 1998 information for X-Off Inc.;The income tax amount computed based on financial statement income is income tax expense for the period.;Compute X-Off’s income tax expense and income tax payable.;The deferred tax for the period of $36,000 is the difference between income tax expense of $45,000 and income tax payable of $9,000.; An existing condition, situation, or set of circumstances involving uncertainty as to possible asset (contingent asset) or liability (contingent liability) that will ultimately be resolved when one or more future events occur or when such event or events fail to occur.; Contingent assets are claims or rights to receive assets, which may become valid eventually. Examples are: Pending litigation whose probable outcome is favorable Possible tax refunds in tax disputes Contingent assets are not accrued!; Contingent liability involve situations of possible loss that are dependent on some future event(s). The likelihood of occurrence of the event may be: Remote (slight) Reasonably possible (more than remote but less than likely) Probable (likely) ; Estimated losses from contingent liability are accrued as liabilities if: It is probable that a liability has been incurred, and The amount of loss can be reasonably estimated. The interpretation of these terms is often based