### Understanding Current Liabilities#### Definition and ExamplesCurrent liabilities, also referred to as determinable liabilities, are financial obligations a company is expected to settle within one year. They are defined by agreements or laws and involve minimal uncertainty. Examples of these liabilities include:- **Accounts Payable:** Money owed by a business to its suppliers.- **Sales Taxes Payable:** Taxes collected from customers on behalf of the government.- **Unearned Revenues:** Payments received in advance for services or goods to be delivered in the future.- **Notes Payable:** Written agreements to pay a specific amount of money at a future date.- **Payroll Liabilities:** Wages owed to employees and any related expenses.- **Current Portion of Long-Term Debt:** The part of long-term financial obligations that must be paid within the next year.Understanding these liabilities is crucial for assessing a company's short-term financial health.#### Additional Information- **Visual Aid:** The image includes a map of the United States. This could be used to demonstrate regional differences in business regulations or tax liabilities.This educational material is intended to provide clarity on the concept of current liabilities and their role in financial accounting. **Knowledge Check 01**On February 13, a jewelry store sells an engagement ring with a sales price of $10,000 to a nervous young man, who pays in cash. The sale is subject to a 9.75 percent sales tax.Prepare the revenue portion of the journal entry by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.**View transaction list**- **Journal entry worksheet**The section indicates this is part of a series of steps or slides (3 of 19) within an educational accounting module. There is a "Check my work" button, a “Help,” “Save & Exit”, and “Submit” options available for students to interact with, ensuring they can verify or save their progress.

Solution: Journal entry to record revenue is as under:

On February 13, a jewelry store sells an engagement ring with a sales price of $10,000 to a nervous young man, who pays in cash. The sale is subject to a 9.75 percent sales tax. Prepare the revenue portion of the journal entry by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns. View transaction list

On February 13, a jewelry store sells an engagement ring with a sales price of $10,000 to a nervous young man, who pays in cash. The sale is subject to a 9.75 percent sales tax. Prepare the revenue portion of the journal entry by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns. View transaction list

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Please read the questions carefully the First question is asking for journal entry.
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