When interest charge was accrued100日Dr.InterestExpense100Cr.InterestPayableWhen the liability was settled20,000日Dr.NotesPayable200InterestPayable100Interest Expense20,300Cr.Cash11
11 When interest charge was accrued Dr. Interest Expense 100 Cr. Interest Payable 100 When the liability was settled Dr. Notes Payable 20,000 Interest Payable 200 Interest Expense 100 Cr. Cash 20,300
(3)TaxPayableIt refers to the amount of tax aperson or口companyhastopay.口When the time of the obligation occurred thatrequiresbusiness to pay taxis notconsistentwith that of actual payment,tax payableappears.口ExampleA certainproductis soldfor$10,000,andissubjecttoasalestaxof6%10,600Dr. Cash10,000Cr.Salesrevenue600Tax payable12
12 (3) Tax Payable It refers to the amount of tax a person or company has to pay. When the time of the obligation occurred that requires business to pay tax is not consistent with that of actual payment, tax payable appears. Example A certain product is sold for $10,000, and is subject to a sales tax of 6%. Dr. Cash 10,600 Cr. Sales revenue 10,000 Tax payable 600
2.Long-termliabilities门DefinitionLong-termliabilitiesaredebts who seredemption periodislongerthanayear or an operating cyclelonger thana year.They are normally ofsubstantialamount.口ContentBondsPayable,long-termloans,etc13
13 2.Long-term liabilities Definition Long-term liabilities are debts who se redemption period is longer than a year or an operating cycle longer than a year. They are normally of substantial amount. Content Bonds Payable, long-term loans, etc