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What kind of account is Note Payable - shareholders?
Notes Payable is a Liability.
Is contingent liability credit or debit?
Contingent liability is not shown in financial statments until it if considerably clear that liability will be happend and until that time it is shown as a note in notes to financial statement section.
Is the contingent liability added to the total liability?
Contingent liabilities are not added to total liabilities but shown as a note to financial statements that these are the liabilities that are contingent on certain event
How does the purchase of equipment by signing a note affect the accounting equation?
asset increased, liability increased
How do you enter a long term liability?
In double-entry accounting it's the same basic entry for all liabilities, the accounts used will vary depending on the type of liability in which you may be referencing.I'll give a couple examples so that hopefully it will help. Company X purchases a computer on account, the amount the company owes is now a liability. To record this purchase a debit is made to Equipment and a credit is made to accounts (or notes) payable.Remember, all liabilities have a credit balance, therefore when entering a liability, there is a credit to the liability and a debit to another account.A company borrows money from a bank and signs a note, the debit is for the cash received and the credit is for the note payable (the liability)A company owes their employee's wages but does not intend to pay the wages until a later date, what they now owe is a liability. A debit to Wage Expense is made with a credit to Wages Payable.*note, a long term liability is still a liability, the difference between a long-term and a current liability is only the time in which the debt (or liability) will be fully paid off. The entry is the same for both.
What kind of account is Note Payable - shareholders?
Notes Payable is a Liability.
Where contingent liability shown in balance sheet?
Contingent liability is not shown in balance sheet because the actual occurance or amount of liability is unknown until some specific future time or event that's why it is shown as note in notes to financial statement section.
Is contingent liability credit or debit?
Contingent liability is not shown in financial statments until it if considerably clear that liability will be happend and until that time it is shown as a note in notes to financial statement section.
Is the contingent liability added to the total liability?
Contingent liabilities are not added to total liabilities but shown as a note to financial statements that these are the liabilities that are contingent on certain event
What is the statute of liability on a promissory note in Calif?
statute of liabiberty is in new york not cali iirc
How does the purchase of equipment by signing a note affect the accounting equation?
asset increased, liability increased
How do you enter a long term liability?
In double-entry accounting it's the same basic entry for all liabilities, the accounts used will vary depending on the type of liability in which you may be referencing.I'll give a couple examples so that hopefully it will help. Company X purchases a computer on account, the amount the company owes is now a liability. To record this purchase a debit is made to Equipment and a credit is made to accounts (or notes) payable.Remember, all liabilities have a credit balance, therefore when entering a liability, there is a credit to the liability and a debit to another account.A company borrows money from a bank and signs a note, the debit is for the cash received and the credit is for the note payable (the liability)A company owes their employee's wages but does not intend to pay the wages until a later date, what they now owe is a liability. A debit to Wage Expense is made with a credit to Wages Payable.*note, a long term liability is still a liability, the difference between a long-term and a current liability is only the time in which the debt (or liability) will be fully paid off. The entry is the same for both.
What are the advantages of becoming a private limited company?
It moves liability from the proprietors as individuals to the company, and facilitates transactions and other administrative processes. Note though the transfer of liability may not be 100% in law for certain situations, and according to national or local laws.
How much is Liability insurance for a renovation company?
It depends on how much coverage you need, what kind of liability (General Liability? Employer's Liability? Auto Liability? Professional Liability?...) & what deductibles, if any, your claims experience, your work experience, who the insurance company is and the way their coverage forms read, their overall claims experience for companies like yours, and where you are located & operate. Your insurance agent can help you with specific quotes. Please note that in general, insurance is always based on these kinds of factors so it's hard to give a ballpark estimate for ANY kind of insurance.
I am on the title to my Aunt's condo-she passed away last year and no assets so the mortgage has not been paid in year and half I am not on the note- No assets Do I have any liability on this?
Not to the note or mortgage however if you are residing there or using it as a mailing address depending on the state you will be liable for rent to the note holder
Is note payable a credit or debit?
Notes payable is a liability for business payable in future time so like all liabilities which has credit balance, notes payable also has credit balance and shown under current liability section of balance sheet.
What transaction would cause a decrease in a liability and a increase in a liability?
Answer:This would be where one type of liability is exchanged for another liability. ExampleThe firm has accounts payable that are due. Since they are short of cash, the firm agrees with one supplier that the firm receives an extention of 2 months, with 5% annual interest.The invoice now needs to be categorized as a note payable. As a result accounts payable is reduced and notes payable increase.
