怀尔德《会计学原理》Chapter-11.pptVIP

An estimated liability is a known obligation of an uncertain amount, but one that can be reasonably estimated. ESTIMATED LIABILITIES P 4 ESTIMATED LIABILITIES Health and Pension Benefits Vacation Benefits Bonus Plans Warranty Liabilities CONTINGENT LIABILITIES Potential obligation that depends on a future event arising out of a past transaction or event. C 3 END OF CHAPTER 11 Chapter 11: Current Liabilities and Payroll Accounting * * A liability is a present obligation that grew out of a past event and will require a future sacrifice to extinguish the obligation. * Part I. Current liabilities are expected to be paid within one year or the normal operating cycle of the company, whichever is longer. Current liabilities are usually extinguished by payment of current assets. Part II.Long-term liabilities are not expected to be paid or extinguished within one year. In this chapter, we will concentrate on current liabilities. * For the accounts shown, we have been able to determine all three variables discussed on the previous screen, so these are known, or determinable, liabilities.Let’s begin our discussion of current liabilities by looking at sales tax accounting. * Part I. On May 15 Max Hardware sold tools and supplies for $7,500. The amount of the sale is subject to a 6% sales tax and Max Hardware is responsible for collecting and paying the tax to the state government. Let’s make the journal entry to record this sale.Part II.We begin with a debit to the cash account for $7,950, the amount of the sale and the tax collected. We credit the sales account for $7,500 credit the current liability account, sales taxes payable, for $450. The sales tax is 6% of the total sale of $7,500.Max Hardware will extinguish the sales taxes payable account when payment is made to the taxing authority. * Part I. We previously studied unearned revenues in the chapter on adjusting entries. Unearned revenues are usually current liabilities. In our example, A-1 Catering recei