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Chapter 10
Liabilities:
Types of Liabilities:
Current Liability:
1.
.
Accounts Payable
Short-term Notes Payable
Accrued Liabilities
Payroll Liabilities
Unearned Revenues
Sales Tax Payable etc.
1. Accounts Payable
2. Note Payable
2. Notes Payable.Contt
On 1 Oct, 2005 the company issued a one year
$8,000 note payable at 10% interest from a local
bank.
1 Oct: Cash
8,000
Note Payable
8,000
Interest Expense
Interest Payable
200
200
2. Notes Payable.Contt
To record repayment at maturity Sep 30, 2006
Sep 30. Note Payable, short-term
8,000
Interest Payable
200
Interest Expense
Cash
600
8,800
3. Accrued Liabilities:
4. Payroll Liabilities:
5. Unearned Revenue
Bonds.
Long-term note payables
Lease obligations etc.
1. Bond:
Bond
Share
Types of Bond:
1.
2.
3.
4.
Government Bond.
Municipal Bond.
Agency Bond.
Corporate Bond.
1.
2.
3.
Mortgage Bond.
Debenture.
Junk Bond.
Lease Liabilities:
Types of Leases:
Operating Lease:
1.
2. Capital Lease:
A type of lease in which the ownership
changes at the end of contract.
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