Pearson eText Horngren's Financial & Managerial Accounting: The Financial Chapters -- Instant Access (Pearson+)

7th Edition

ISBN: 9780136714194

Author: Tracie Miller-Nobles, Brenda Mattison

Publisher: PEARSON+

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The Effect Of Prepaid Taxes On Assets And Liabilities

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Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.

Ledger Posting

A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the a…

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Adjustment Entries

At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial repor…

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Textbook Question

Chapter 11, Problem 2QC

A company sells $180,000 (selling price) of goods and collects sales tax of 8%. What current liability does the sale create?

a. Sales tax payable of $14,400

b. Sales revenue of $194,400

c. Unearned revenue of $14,400

d. None; the company collected cash up front.

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Chapter 11, Problem 1QC

Chapter 11, Problem 3QC

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Chapter 11 Solutions

Pearson eText Horngren's Financial & Managerial Accounting: The Financial Chapters -- Instant Access (Pearson+)

Ch. 11 - On January 1, 2016, a business borrowed 18,000 on...Ch. 11 - A company sells 180,000 (selling price) of goods...Ch. 11 - Prob. 3QC Ch. 11 - Prob. 4QC Ch. 11 - Prob. 5QC Ch. 11 - Prob. 7QC Ch. 11 - Vega Company expects to pay a 4% bonus on net...Ch. 11 - Prob. 9QC Ch. 11 - Prob. 10QC Ch. 11 - Prob. 1RQ

Ch. 11 - What is a current liability? Provide some examples...Ch. 11 - How is sales tax recorded? Is it considered an...Ch. 11 - How do unearned revenues arise?Ch. 11 - What do short-term notes payable represent?Ch. 11 - Coltrane Company has a 5,000 note payable that is...Ch. 11 - Prob. 7RQ Ch. 11 - Prob. 8RQ Ch. 11 - Prob. 9RQ Ch. 11 - Prob. 10RQ Ch. 11 - What are the two main controls for payroll?...Ch. 11 - When do businesses record warranty expense, and...Ch. 11 - Prob. 13RQ Ch. 11 - Prob. 14RQ Ch. 11 - Prob. 15RQ

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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

A company sells $180,000 (selling price) of goods and collects sales tax of 8%. What current liability does the sale create? a. Sales tax payable of $14,400 b. Sales revenue of $194,400 c. Unearned revenue of $14,400 d. None; the company collected cash up front.

Solution Summary: The author explains that current liabilities are debt and obligations of a business. The correct answer is to solve the current liability created by the sales.

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Chapter 11 Solutions