Category Archives for Liabilities

Recording Warranty Expenses and Liabilities

What is a warranty? Most of the products we purchase come with some type of warranty. A warranty is guarantee that the manufacturer of the product will repair or replace the product for a certain period

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Recording Payroll and Payroll Liabilities

In the previous post, we defined and calculated gross pay, payroll taxes, and net pay. In this post, we will discuss how to record the paycheck and the employer taxes. You might be wondering why this is

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Payroll and Payroll Taxes

Payroll is one of the most complicated areas of accounting because of all the rules and regulations surrounding payroll. Not only do we need to calculate taxes, but we also need to subtract things like

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Sales Tax and Sales Tax Payable

What is sales tax? Sales tax is a tax on the price of a good or service. This tax is a percentage of the price and is added by the final seller. There are only five states in the United States that do

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Introduction to current liabilities

What is a liability? A liability is an obligation that the company has to another party. Typically when we think of liabilities, we think of accounts payable or notes payable, but there are many other

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