1. AC113 Accounting for Non- Accounting Majors Seminar: Unit 9 Chapter 8 Emil Koren, CPA, MBA

2. Welcome Introduction Current Liabilities Contingent Liabilities Payroll Bonds Stock – Common – Preferred – Treasury Stock Dividends – Cash – Stock – Stock Splits Earnings per Share

3. Introductions Please read Chapter 8 Read and study the Vocabulary for this Unit Post to the Discussion question Do the Assignment Take the Quiz

4. Current Liabilities Paid in one year or less – Accounts Payable – Notes Payable – Income Tax Payable

5. Contingent Liabilities Probable Estimable – Record as Liability Not Estimable – Disclosure in notes Reasonable Possible – Disclosure in Notes Remote – Ignored

6. Payroll Amount paid to employees Net Pay Less: FICA Tax Payable Less: Federal Income Tax Payable Less: State Income Tax Payable Less: Other Deductions Equals; Net Pay Employer Taxes FICA Tax Payable FTA Tax Payable SUTA Tax Payable

7. Bonds Long-term liability Principle Pays Interest I = P x R x T Sold at Discount Sold at Premium

8. Stock Basic Stock – Issued at Par Common – Basic class of stock Preferred – Preferential treatment for dividends Treasury Stock – Repurchase of own stock

9. Dividends Cash: Cash distributed to owners – Date of Declaration – Date of Record – Date of Payment Stock – Distribution of additional shares of stock Stock Split – Proportionally increase the number of shares and decrease the par value

10. Earnings per Share Earnings per share = Net Income – Preferred Dividends / Number of Common Shares Outstanding

11. Questions and Comments ?