Deferred Tax Liability Accounting

Deferred tax liabilities are shown as long term liabilities on the balance sheet of a business, and represent obligations to pay income tax at some point in the future arising from temporary timing differences.

Last modified June 2nd, 2017 by Team
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Accrued Income Tax

A business has an estimated annual income tax expense of 14,000 due of profits for the accounting period. A demand for the amount has not yet been received from the tax authorities, and the expense has not been recorded in the accounting records. An accrued income tax adjusting entry is made in the accounting records.

Last modified July 27th, 2018 by Team
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Accrued Salaries

Accrued salaries are salaries which has been incurred but not yet recorded in the accounting ledgers at the end of the accounting period.

This accrued salaries journal entry example shows how to record an accrued expense for salaries when an employee has carried out work during an accounting period but has not been paid by the end of the accounting period.

Last modified October 3rd, 2018 by Team
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Extended Warranty Accounting

In addition to the standard warranty, businesses often sell an extended warranty for an additional fee. Revenue from the sale of extended warranties is recognized on a straight line basis over the term of the warranty.

Last modified November 6th, 2016 by Team
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Warranty Costs

Manufacturer warranty costs are both probable and subject to reasonable estimation and therefore create a contingent liability which a business needs to include in its financial statements.

Last modified October 9th, 2018 by Team
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Incorporation Expenses

When an owner pays incorporation costs on behalf of a business, a journal entry is needed to record the business expense and the liability to the owner.

Last modified November 6th, 2016 by Team
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Accrued Expenses Example

Accrued expenses are expenses which has been incurred but not yet recorded in the accounting ledgers at the end of the accounting period.

A business has an annual premises rent of 12,000 but an invoice has not been received from the landlord and the rental expense has not been recorded in the accounting records.

Last modified July 2nd, 2018 by Team
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