Unit 12: Current Liabilities and Payroll

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.