Why do unearned revenues and customers’ deposits qualify as liabilities?
Answer to relevant QuestionsWhat are contingent liabilities? Provide an example. How does the rationale for the operating cash flow ratio differ from the rationale for the current, quick, and cash ratios? On June 30, Carmean Inc. borrows $250,000 from 1st National Bank with an 8-month, 7 percent note. Required: What journal entry is made on June 30? Kinsella, Inc., has a gross payroll of $10,000 for the pay period. The entire payroll is subject to Social Security and Medicare taxes. Kinsella must also withhold $1,200 in income taxes from the employees and pay state ...On May 18 Stanton Electronics purchased, on credit, 1,000 TV sets for $400 each. Stanton plans to resell these TV’s in its store. Stanton paid the supplier on June 30. Required: Prepare the necessary journal entry (or ...
Post your question