MGT120H5 Lecture Notes - Lecture 11: Canada Revenue Agency, Accounts Payable, Promissory Note
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MGT120H5 Full Course Notes
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7: cost of property, plant, equipment, capital vs. operating expenditure, depreciation, straight-line, units of production, diminishing (or double) balance, additional depreciation topics. Liabilities: debts, borrowing is one way a company finances its operations, 2 types, current, obligations due within one year/within company"s normal operating cycle (if longer than 1 year) (due sooner than long-term, ex. 6,000: long-term, contingent liabilities, potential liability that depends on future events arising out of past events, ex. Lawsuits in progress, guarantees of a subsidiary"s debt, audit by canada revenue. Agency: these liabilities are disclosed in the notes to the financial statement if it is likely that they will become actual liabilities. January 1, company signs a ,000 9-month note at 4%. What is the adjusting entry required if the company prepares financial statements on june 30: dr interest expense 4,000, cr interest payable 4,000, 200,000x0. 04 = 8,000 x (6/12) = 4,000.
