COMMERCE 1AA3 Lecture Notes - Lecture 9: Market Price, Net Income, Book Value
9 Jun 2016
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Obligations due within a year: or (cid:449)ithi(cid:374) the (cid:272)o(cid:373)pa(cid:374)y"s (cid:374)or(cid:373)al operati(cid:374)g (cid:272)y(cid:272)le. Accounts payable: amounts owed for products purchased on credit. Short term notes payable: notes payable due within a year, accrues interest expense. Sales tax payable: collecting tax from customers. Accrued liabilities/expenses: results from expenses incurred but not yet paid. Payroll: a major expense for most companies. Unearned revenue: business receives cash before recording revenue. Current portion of long term debt: long term debt that is paid in installments, amount of principal payable within one year. Purchase of inventory on oct 1st: debit inventory ,000, credit short term notes payable . Entry to record interest expense 10: debit interest expanse ,000 x. 0. 10 x (3 12) = : credit interest payable . Entry to record notes payment on march 21st: debit short term notes payable . ,000: debit interest payable , debit interest expense , credit cash ,000 x 0. 10 x (6 12)
