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The $13,420 of Wages Expense is the total of the wages used by the company through December 31. The Wages Payable amount will be carried forward to the next accounting year. The Wages Expense amount will be zeroed out so that the next accounting year begins with a $0 balance. The balance in the liability …
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Accounts payable are generally settled according to a predetermined schedule agreed upon by the customer and the vendor. The difference between the accounting face value of the notes payable and the cash received is referred to as the discount, and represents the cost to the business of issuing the note. Non interest bearing notes payable …
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