After completing this chapter you should be able to: Explain a current liability, and identify the major types of current liabilities, describe the accounting for notes payable, explain the accounting for other current liabilities, compute and record the payroll for a pay period,.and other contents. | Prepared by Coby Harmon University of California, Santa Barbara Westmont College 11-1 11 Current Liabilities and Payroll Accounting Learning Objectives After studying this chapter, you should be able to: [1] Explain a current liability, and identify the major types of current liabilities. [2] Describe the accounting for notes payable. [3] Explain the accounting for other current liabilities. [4] Explain the financial statement presentation and analysis of current liabilities. [5] Describe the accounting and disclosure requirements for contingent liabilities. [6] Compute and record the payroll for a pay period. [7] Describe and record employer payroll taxes. [8] Discuss the objectives of internal control for payroll. 11-2 Preview of Chapter 11 Accounting Principles Eleventh Edition Weygandt Kimmel Kieso 11-3 Current Liabilities Current liability is debt with two key features: 1. Company expects to pay the debt from existing current assets or through the creation of other current liabilities. 2. Company will pay the debt within one year or the operating cycle, whichever is longer. Current liabilities include notes payable, accounts payable, unearned revenues, and accrued liabilities such as taxes payable, salaries and wages payable, and interest payable. 11-4 LO 1 Explain a current liability, and identify the major types of current liabilities. Accounting for Current Liabilities Question To be classified as a current liability, a debt must be expected to be paid: a. out of existing current assets. b. by creating other current liabilities. c. within 2 years. d. both (a) and (b). 11-5 LO 1 Explain a current liability, and identify the major types of current .
