ACCT 3001 Lecture : Course Notes Ch13
Document Summary
Chapter 13 current liabilities & contingencies: current liabilities, contingencies, presentation, ifrs insights. Current liabilities are obligations whose liquidation is reasonably expected to require use of existing resources properly classified as current assets, or the creation of other current liabilities. Retailers must collect sales taxes from customers on transfers of tangible personal property and on certain services and then remit to the proper governmental authority. Be13-6: dillons corporation made credit sales of ,000 which are subject to 6% sales tax. The corporation also made cash sales which totaled ,670 including the 6% sales tax. (a) prepare the entry to record dillons" credit sales. (b) prepare the entry to record dillons" cash. Amounts owed to employees for salaries or wages are reported as a current liability. Payroll taxes come in two forms: the amount the company takes out of your paycheck (the difference between your gross and net pay) these are payroll withholding taxes that represent the employees" liabilities.
