Current Liabilities

1
Current Liabilities

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2
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3
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4
??????????????? (Current Liabilities)

• ????????????????? 1 ?? ???? ?????????????????????
  ??????(companys operating cycle)
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5
???????????? (Notes Payable)

• ??????????????????????(Promissory note)
  ??????????????????????????????????
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• ???????????????????????????? ???????????????????
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  ???????????????

6
???????????????????? (Short-Term Notes Payable)

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  ???????? ???????????????????????????????
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  ??????? ???????????????????????????????????????
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• ????????????????????????????????????????????????
  ?????? 433

7
Accounts Payable

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• Amounts owned for products or service purchased
  on account.

8
Accrued Expenses

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• ???????????????????????????????????????
  ????????????????????????????? ????????????????????
  
• ????????????????????????????? ????????????????????
  ????????????? ?????????????????????????????(unearn
  ed Revenue)

9
Unearned Revenue

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• ??????????????????????????????????????????????????
  ?????? (received cash before earning revenue)
• ??????????????????????????????????????????????????
  ??????????

10
Contingent Liabilities

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• ?????????????????????????????????
• ?????????????????????????? ????
• Guaranteeing debt of others
• Await outcome of pending lawsuit

11
Contingent Liabilities

• Probable ????????????????????????
• Possible ?????????????
• Remote ??????????????????????

12
Contingent liabilities

• Probable
• ????????????? ???????????
• Record an actual liabilities if it is probable
  that the loss will occur.
• amount of loss can be reasonably estimated

13
Estimated Liabilities

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• ??????????????????????????????????????????????????
  ?????????????????????????????????
• ?????????????????????????? ??????????????????????
  ??????? ????????????????????

14
Estimated Warranty Payable

• Manufacturing and retailing companies often
  provide guarantees on products
• 30-60-90 days or one year in length
• Matching principle requires company to estimated
  expense of providing warranty and recognize it in
  same accounting period as revenue earned from
  product sale

15
Estimated Warranty Payable

• Cisco offers a 90-day warranty on equipment it
  sells, recent actual warranty work amounts to
  0.75 of all product sold
• December 2002 revenues are 3,500,000
• What adjusting entry is necessary to estimate
  expense and current liabilities??

16
Estimated Warranty Payable

• 31Dec02 Warranty Expense 26,250
• Warranty Payable 26,250

• When Cisco actually replaces equipment under
  warranty

15Jun03 Warranty Payable xxx
Supplies xxx
(Cash/Equipment/Inventory)
17
Contingent liabilities

• Possible
• ?????????????? ??????????????
• Reasonably possible loss will be incurred
• Disclose in Notes to Financial Statement.

18
Contingent liabilities

• Remote
• Not likely that loss will be incurred
• Do not disclose loss contingencies.

19
Payroll Liabilities

• ????????????????????????? ?????????????????
• ??????????????????/????????????????????
  ?????????????????????????? ???????(withholding
  taxes) ??????? ???????????????????????????????????
  ?????? ?????????????????????????????????????
  ????????????????

20
Assignments

• Ex.11-1
• Ex.11-6
• P.11-1A
• P.11-6A