Learning Objectives

By the end of this section, you will be able to:

• Describe the accounting for payrolls, short-term financing devices, and other current liabilities.
• Describe the occurrence and accounting for typical current liabilities.
• Record in general journal form entries relating to notes payable.
• Define contingent liabilities and discern when these should be recorded in the accounts, and when footnote disclosure is appropriate.
• Record in general journal form transactions related to product warranties.
• Describe payroll accounting.
• Prepare general journal entries to accrue salaries and pay employees.
• Prepare entries to accrue payroll-related taxes for employers.