1、Chapter 11,Current Liabilities and Payroll Accounting,Conceptual Learning Objectives,C1: Describe current and long-term liabilities and their characteristics C2: Identify and describe known current liabilities C3: Explain how to account for contingent liabilities,A1: Compute the times interest earne
2、d（收入利息比） ratio and use it to analyze liabilities,Analytical Learning Objectives,P1: Prepare entries to account for short-term notes payable P2: Compute and record employee payroll deductions and liabilities P3: Compute and record employer payroll expenses and liabilities P4: Account for estimated li
3、abilities, including warranties and bonuses P5: Appendix 11A: Identify and describe the details of payroll reports, records, and procedures,Procedural Learning Objectives,Past,Present,Future,Defining Liabilities,Because of a past event . . .,The company has a present obligation（义务）,. . . For future
4、sacrifices,C 1,Classifying Liabilities,Current Liabilities,C 1,Current and Long-Term Liabilities,$46 mil.,$1,658 mil.,$719 mil.,$44 mil.,C 1,Uncertainty in Liabilities,Uncertainty in Whom to Pay,Uncertainty in When to Pay,Uncertainty in How Much to Pay,C 1,Accounts Payable,Sales Taxes Payable,Unearn
5、ed Revenues,Short-Term Notes Payable,Known (Determinable) Liabilities,Payroll Liabilities,Multi-Period Known Liabilities,C 2,On May 15, 2007, Max Hardware sold building materials for $7,500 that are subject to a 6% sales tax.,Sales Taxes Payable,C 2,On May 1, 2007, A-1 Catering received $3,000 in ad
6、vance for catering a wedding party to take place on July 12, 2007.,Unearned Revenues,C 2,A written promise to pay a specified amount on a definite future date within one year or the companys operating cycle, whichever is longer.,Short-Term Notes Payable,P1,On August 1, 2007, Matrix, Inc. asked Carte
7、r, Co. to accept a 90-day, 12% note to replace its existing $5,000 account payable to Carter. Matrix would make the following entry:,Note Given to Extend Credit Period,P1,On October 30, 2007, Matrix, Inc. pays the note plus interest to Carter.,Note Given to Extend Credit Period,P1,Note Given to Borr
8、ow from Bank,P1,Face Value Equals Amount Borrowed,On September 1, 2008, Jackson Smith borrows $20,000 from American Bank. The note bears interest at 6% per year. Principal and interest are due in 90 days (November 30, 2008).,P1,On November 30, 2008, Smith would make the following entry:,Face Value E
9、quals Amount Borrowed,P1,Maturity Date,End-of-Period Adjustment to Notes,P1,Dec. 16, 2008,Dec. 31, 2008,Feb. 14, 2009,James Burrows borrowed $8,000 on Dec. 16, 2008, by signing a 12%, 60-day note payable.,End-of-Period Adjustment to Notes,Note Date,End of Period,Maturity Date,P1,On December 16, 2008
10、, James Burrows would make the following entry:,End-of-Period Adjustment to Notes,On December 31, 2008, the adjustment is:,$8,000 12% (15 360) = $40,P1,On February 14, 2009, James Burrows would make the following entry.,End-of-Period Adjustment to Notes,P1,Employers incur expenses and liabilities fr
11、om having employees.,Payroll Liabilities,P2,Employee Payroll Deductions,FICA Taxes,Medicare Taxes,Federal Income Tax,State and Local Income Taxes,Voluntary Deductions,Gross Pay,P2,FICA Taxes Soc. Sec.,FICA Taxes Medicare,2006: 6.2% of the first $94,200 earned in the year ( Max = $5,840).,2006: 1.45%
12、 of all wages earned in the year.,Employers must pay withheld taxes to the Internal Revenue Service (IRS).,Employee FICA Taxes,Federal Insurance Contributions Act (FICA),P2,Amounts withheld depend on the employees earnings, tax rates, and number of withholding allowances.,Employers must pay the taxe
13、s withheld from employees gross pay to the appropriate government agency.,Federal Income Tax,State and Local Income Taxes,Employee Income Tax,P2,Amounts withheld depend on the employees request.,Employers owe voluntary amounts withheld from employees gross pay to the designated agency.,Voluntary Ded
14、uctions,Examples include union dues, savings accounts, pension contributions, insurance premiums, and charities,Employee Voluntary Deductions,P2,The entry to record payroll expenses and deductions for an employee might look like this.,Recording Employee Payroll Deductions,P2,Employer Payroll Taxes,P
15、3,Federal and State Unemployment Taxes,P3,The entry to record the employer payroll taxes for January might look like this:,SUTA: $4,000 5.4% = $216 FUTA: $4,000 (6.2% - 5.4%) = $32,FICA amounts are the same as that withheld from the employees gross pay.,Recording Employer Payroll Taxes,P3,Multi-Peri
16、od Known Liabilities,Often include unearned revenues and notes payable.,Unearned revenues from magazine subscriptions often cover more than one accounting period. A portion of the earned revenue is recognized each period and the unearned revenue account is reduced.,Notes payable often extend over mo
17、re than one accounting period. A three-year note payable would be classified as a current liability for one year and a long-term liability for two years.,P3,An estimated liability is a known obligation of an uncertain amount, but one that can be reasonably estimated.,Estimated Liabilities,P4,Employe
18、r expenses for pensions or medical, dental, life and disability insurance,Health and Pension Benefits,Assume an employer agrees to pay an amount for medical insurance equal to $8,000, and contribute an additional 10% of the employees $120,000 gross salary to a retirement program.,P4,Employer expense
19、s for paid vacation by employees,Vacation Benefits,Assume an employee earns $62,400 per year and earns two weeks of paid vacation each year.,P4,Many bonuses paid to employees are based on reported net income.,Bonus Plans,Assume the annual yearly bonus to the store manager is equal to 10% of the comp
20、anys annual net income minus the bonus. The store earned $100,000 net income this year.,P4,Many bonuses paid to employees are based on reported net income.,Bonus Plans,Assume the annual yearly bonus to the store manager is equal to 10% of the companys annual net income minus the bonus. The store ear
21、ned $100,000 net income this year.,P4,Warranty Liabilities,Sellers obligation to replace or correct a product (or service) that fails to perform as expected within a specified period. To conform with the matching principle, the seller reports expected warranty expense in the period when revenue from
22、 the sale is reported.,A dealer sells a car for $32,000, on December 1, 2007, with a warranty for parts and labor for 12 months, or 12,000 miles. The dealership experiences an average warranty cost of 3% of the selling price of each car.,P4,Warranty Liabilities,A dealer sells a car for $32,000, on D
23、ecember 1, 2007, with a warranty for parts and labor for 12 months, or 12,000 miles. The dealership experiences an average warranty cost of 3% of the selling price of each car.,On February 15, 2008, parts of $200 and labor of $250 covered under warranty were incurred.,P4,Amount . . .,Contingent Liab
24、ilities,Potential obligation that depends on a future event arising out of a past transaction or event.,C3,Accounting for Contingent Liabilities,Reasonably Possible Contingent Liabilities,Potential Legal Claims A potential claim is recorded if the amount can be reasonably estimated and payment for d
25、amages is probable.,Debt Guarantees The guarantor usually discloses the guarantee in its financial statement notes. If it is probable that the debtor will default, the guarantor should record and report the guarantee as a liability.,C3,If income before interest and taxes varies greatly from year to
26、year, fixed interest charges can increase the risk that an owner will not earn a positive return and be unable to pay interest charges.,Times Interest Earned,A1,深中浩的或有负债,深圳中浩（集团）股份有限公司（000015）于1984年设立，1991年公开发行股票，1993年以后开始走下坡路，1995年出现亏损，1998年资不抵债。2001年10月22日终止上市。公司在主板市场的最后收盘价，A股为6.85元，B股为1.95港元。 深中浩
27、作为深圳第一家公司，退市之际创下几项纪录：子公司高达家；债务诉讼高达起，涉及金额亿元；债权人最多，涉及多家不同性质的债权人。,截至1996年12月31日止本集团存在以下方面的或有负责或有损失,被担保公司名称 与集团关系 担保金额 诉讼纠纷金额 RMB RMB 深圳中浩工贸公司 集团附属公司 74,110,000 23,550,000深圳中鑫物资供应公司 集团附属公司 700,000 700,000海口海深旅游食品公司 集团联营公司 950,000 850,000中浩声美实业公司 集团附属公司 4,200,000 900,000深圳耀福鞋业有限公司 集团附属公司 7,280,000 4,660,000合计 87,240,000 30,660,000(b)本集团为其他单位融资提供担保如下：被担保单位 担保金额 诉讼纠纷RMB 深圳华深进出口公司 23,299,920 无深圳中立投资发展公司 10,500,000 无惠州市中惠发展总公司 3,700,000 无合计 37,499,920,深中浩历年的担保负债情况,End of Chapter 11,
