This is called discontinuing the note, and the discount is the difference between the face value of the bills payable and proceeds from the loan. WebWhere are Salaries Payable reported? For example, a business may need a brief influx of cash to pay mandatory expenses such as payroll. As a result, their earnings are a liability. So, for February 2022 the accounting period ends on February 28, 2022, and anyone who gets paid for work done until the 20th will not be paid for the remaining eight days. Accrued wages usually consist of hourly wages, bonuses, employee deductions and employee taxes, such as FICA taxes and federal income taxes, among others. Salary payable is a liability account keeping the balance of all the outstanding wages. Every company doesnt need to maintain salaries payable account because some companies pay their employees at the end of every month, so in that situation, there is no liability present at the end of the month. Salary payable refers to the liability of the company towards its employees against the amount of salary of a period that became due but has not been paid yet to them by the company, and it is shown in the balance of the company under the head liability. All accrued salaries that are payable within one year are categorized under current liability. Keep in mind that any money a company owes its employees (wages payable) or the government for payroll taxes (taxes payable) is a current liability, too.
\nHeres a brief description of each:
\nShort-term notes payable: Notes due in full less than 12 months after the balance sheet date are short term.
","authors":[{"authorId":9470,"name":"Maire Loughran","slug":"maire-loughran","description":" Maire Loughran is a self-employed certified public accountant (CPA) who has prepared compilation, review, and audit reports for fifteen years. Login details for this Free course will be emailed to you. Accounts Payable Compared To Accounts Receivable. Accrued expense Journal Entry is the journal entry passed to record the expenses which are incurred over one accounting period by the company but not yet paid actually in that accounting period. I hold a BS in Computer Science and have been a freelance writer since 2011. Commonly, it will be paid within 12 months from the year-end of financial statements, and it is not generally more than that. This article has been a guide to what Salary Payable is and its definition. At present, most liabilities show up on the balance sheet at historic cost rather than fair value. Your email address will not be published. O a non-current liability. Accrued wages refer to the money your employees have earned within a specified accounting period that you havent paid out yet. All the Taxes account types like Social security, State Income tax, Health Insurance, etc., payables accounts are created to record the withheld amounts and reconcile the same with relevant tax authorities. 7. The major kinds of payroll or salary payment journal entries can be: You are free to use this image on your website, templates, etc., Please provide us with an attribution linkHow to Provide Attribution?Article Link to be HyperlinkedFor eg:Source: Salary Payable (wallstreetmojo.com). Because the rental arrangement is recorded as an asset, the related lease obligation must be recorded as a liability. Usually, they consist of money the company owes to others. Gross wages are the amount of remuneration paid to employees before any deductions like taxes, including social security and Medicare, life insurance, pension contributions, bonuses. In other words, it comprises the amount received for the goods delivery that will take place at a future date.read more are advance payments made by customers for future work to be completed in the short term like an advance magazine subscription. Current Portion of Long-Term Debt (CPLTD) is payable within the next year from the date of the balance sheet, and are separated from the long-term debt as they are to be paid within next year using the companys cash flows or by utilizing its current assets. The total salary expense for January is USD20,000. How you account for the money that leaves your organization may be at odds with when you pay it since there is usually a lag time. Routine/Recurring occurs as a normal operational expense of the business. WebCP 148 Assume the following income statement and balance sheet information: Service revenue (all cash) $175 Operating expenses Salaries (all cash)$ 85 Net income $90 2020 2019 Current assets Cash $1,250 $1,600 Shortterm invest. Out of which, USD10,000 was paid on 30th January, while the remaining balance is still unpaid. Here we provide the list of current liabilities along with practical examples and best ways to analyze current liabilities, the working capital, and the liquidity ratios like current and quick ratios. They represent short-term debts, so the company reports AP on the balance sheet as current liabilities. Accounts payable is the amount due by a business to its suppliers or vendors for the purchase of products or services. These taxes are collected by tax authorities from respective employers and paid for human welfare schemes, infrastructure development. Offset account is an account which is directly or indirectly related to another account. A member of the American Institute of Certified Public Accountants, she is a full adjunct professor who teaches graduate and undergraduate auditing and accounting classes. Keep in mind that any money a company owes its employees (wages payable) or the government for payroll taxes (taxes payable) is a current liability, too.\nHeres a brief description of each:
\nShort-term notes payable: Notes due in full less than 12 months after the balance sheet date are short term. These accumulate with time. Dividend declared is that portion of profits earned that the companys board of directors decides to pay off as dividends to the shareholders of such company in return to the investment done by the shareholders through the purchase of the companys securities. You may also have a look at these following recommended articles on accounting basics , Your email address will not be published. Each of these liabilities is current because it results from a past business activity, with a disbursement or payment due within a period of less than a year. The quick ratio, also known as the acid test ratio, measures the ability of the company to repay the short-term debts with the help of the most liquid assets. Showing the invoice at gross is the more common practice, primarily because it is more expedient. 1. AccountingTools: Salaries payable definition, HarbourFronts: Salary Payable: Journal Entry, Calculation, Example. A negotiable instrument refers to the transferrable and signed written document whereby the payer guarantees or promises to pay a certain sum on a specific future date or as on-demand to the payee or bearer. An example would be accrued wages, as a company knows they have to periodically pay their employees. Short-term notes payable: Notes due in full less than 12 months after the balance sheet date are short term. Some examples are accounts payable, payroll liabilities, and notes payable.
\nPresenting both assets and liabilities as current and noncurrent is essential for the user of the financial statements to perform ratio analysis.
\nCurrent liabilities are ones the company expects to settle within 12 months of the date on the balance sheet. WebWages payable refers to the wages that a company's employees have earned, but have not yet been paid. It states that the companies are free to borrow funds from these financial institutions to fulfill their cash flow needs by paying off the underlying commitment fees. ","slug":"what-does-intermediate-accounting-cover","categoryList":["business-careers-money","business","accounting","general-accounting"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/176844"}},{"articleId":176843,"title":"Important Differences between U.S. and International Accounting Standards","slug":"important-differences-between-u-s-and-international-accounting-standards","categoryList":["business-careers-money","business","accounting","general-accounting"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/176843"}},{"articleId":175445,"title":"What Is the Securities and Exchange Commission (SEC)? Notes PayableNotes PayableNotes Payable is a promissory note that records the borrower's written promise to the lender for paying up a certain amount, with interest, by a specified date. There are two types of accrued liabilities: routine or recurring and infrequent or non-routine. Salary payable is a liability account keeping the balance of all the outstanding wages. And that is where accrued wages and salaries payable amounts come in. It is sometimes recorded under the cost of goods sold, cost of services, or operating expenses depending on how the staff is involved in the operation. Cash: Cash includes accounts such as the companys operating checking account, which the business uses to receive customer payments and pay business expenses, or an imprest account, which keeps a fixed amount of cash in it (such Traditional manufacturing facilities maintain current assetsCurrent AssetsCurrent assets refer to those short-term assets which can be efficiently utilized for business operations, sold for immediate cash or liquidated within a year. Corporate Finance Institute: Accrued Expenses, AccountingTools: Accrued salaries definition. What Is the Securities and Exchange Commission (SEC). For example, if a loan is to be repaid in 3 years time, the liability would be recognized under non-current liabilities. It includes bills of exchange, delivery order, promissory note, customer receipt, etc. It reduces the balance of the related account to give us a net balance which is used for calculation, valuation, interpretation, and application in financial statements as the requirement may arise in the course of business and statutory requirements. This journal entry will then be reversed in the next accounting period so that the initial recognition or the initial recordation entry can take its place. This entry shall record or recognize the gross salary or gross wagesGross WagesGross wages are the amount of remuneration paid to employees before any deductions like taxes, including social security and Medicare, life insurance, pension contributions, bonuses.read more earned by employees, along with the withholdings from their paycheck, and if any additional taxes would be owed to local authorities or government by the firm. For example, the debt can be to an unrelated third party, such as a bank, or to employees for wages earned but not yet paid. Account Disable 12. Presenting both assets and liabilities as current and noncurrent is essential for the user of the financial statements to perform ratio analysis. They normally arise from the purchase of goods or services. Current liabilities are the obligations of the company which are expected to get paid within one year and include liabilities such as Accounts payable, short term loans, Interest payable, Bank overdraft and the other such short term liabilities of the company. It comprises inventory, cash, cash equivalents, marketable securities, accounts receivable, etc.read more at levels double that of current liabilities on the balance sheet. These payables are required to recognize the salaries expenses in the companys financial statements at the end of the period. Typical current liabilities include accounts payable, salaries, However, the companys accrued salary expenses are the expenses that the company is expected to incur based on its best estimate. Dividends payable: Payments due to shareholders of record after the date declaring the dividend. Current liabilities on the And theres no GAAP requirement for the order in which they show up on the balance sheet, as long as they are properly classified as current. The term accounts payable (AP) refers to a company's ongoing expenses. Some examples are accounts payable, payroll liabilities, and notes payable.
\nPresenting both assets and liabilities as current and noncurrent is essential for the user of the financial statements to perform ratio analysis.
\nCurrent liabilities are ones the company expects to settle within 12 months of the date on the balance sheet. The journal entries for the above example as on accrual in books of account would be as follows: Continuing with the above example and details, consider now that Vanilla Bond Pvt Ltd pays its employees salary every 29th month via NEFT from the Chase Bank account. WebSalary payable can be attributed to the type of payroll journal entry that shall be used to record in the books of account the compensation which shall be paid to the employees. WebNote 5 - Other noncurrent assets. Accounts Payable 2. And if they earn a monthly salary, prorate the salaries based on what you pay daily. Others Current liabilities are the other type of small payable. The following are the list of Non-Current Liabilities items that normally found in the Statement of Financial Position. Long-Term Debt: The debt that overdue over the 12 months period. The terms and conditions of the debt are normally found in the debt agreement. Restricted cash is the portion of cash that has been set aside for a specific purpose. This account decreases when the company makes payments to its staff. The following points highlight the six main types of current liabilities. It states that the companies are free to borrow funds from these financial institutions to fulfill their cash flow needs by paying off the underlying commitment fees.read more, Current portion of long-term debtCurrent Portion Of Long-term DebtCurrent Portion of Long-Term Debt (CPLTD) is payable within the next year from the date of the balance sheet, and are separated from the long-term debt as they are to be paid within next year using the companys cash flows or by utilizing its current assets.read more is a part of the long-term debt due within the next year, Lease obligations due to the lessorLessorA lessor is an individual or entity that leases out an asset such as land, house or machinery to another person or organization for a certain period.read more in the short-term. It is shown as the part of owners equity in the liability side of the balance sheet of the company.read more journal entry, the salary expense sitting with the debit balance will be credited, and the Retained earnings account will be debited. However, wages expense represents all wages and salaries earned within an accounting period regardless of whether they were paid or not. The balance in the account increases with a credit and decreases with a debit. Salaries & Wages Payable $10,000, Dr. Salaries & Wages Payable$5,000, Cr. Salary expenses are only recorded in the companys income statement for the period they are incurring. Many Git commands accept both tag and branch names, so creating this branch may cause unexpected behavior. After that, salary expense a/c will also be cleared out to 0 balance at the end of each month. Employee salary and wages are recorded in the current liabilities section of the balance sheet and represent the amount of money the company is spending on labor costs. WebCurrent (short-term) liabilities include: accounts payable, notes payable, tax obligations, accrued expenses, unearned include, short-term portion of a long-term liability, and other Relax Company. Liabilities are claimed against the companys assets. Being part of the working capital is also significant for calculating free cash flow of a firm. WebCP 148 Assume the following income statement and balance sheet information: Service revenue (all cash) $175 Operating expenses Salaries (all cash)$ 85 Net income $90 2020 2019 Current assets Cash $1,250 $1,600 Shortterm invest. Unearned revenue is the advance payment received by the firm for goods or services that have yet to be delivered. Routine/Recurring. .. View Policies Current Attempt in Progress The Salaries Payable account is classified as an expense. Wave Accounting Software, Akaunting Software, Slick Pie Accounting Software, GnuCash Accounting Software, xTuplePostBoks Accounting Software, Inv24 Accounting and Inventory Software, and NCH Express Accounts Accounting Software are among the best accounting softwares available. You are free to use this image on your website, templates, etc., Please provide us with an attribution link. Current assets refer to those short-term assets which can be efficiently utilized for business operations, sold for immediate cash or liquidated within a year. Salary payable is a current liability account containing all the balance or unpaid wages at the end of the accounting period. Accrued Liabilities Types. Determine the last time the employees were paid for their work. Compare that to the dates that mark the end of the accounting period. Mutually exclusive refers to those statistical events which cannot take place at the same time. Although it is more prudent to maintain the current ratio and a quick ratio of at least 1, the current ratio greater than one provides an additional cushion to deal with unforeseen contingencies. For example, the salary to be paid to employees for services in the next fiscal yearFiscal YearFiscal Year (FY) is referred to as a period lasting for twelve months and is used for budgeting, account keeping and all the other financial reporting for industries. If the salary expenses during the year are USD100,000,000, but out o this amount, only USD80,000,000 were paid at the end of the year, then the different amount of USD20,000,000 should be the salary payable. Accrual Accounting is an accounting method that instantly records revenues & expenditures after a transaction occurs, irrespective of when the payment is received or made. Advance receipts from customers for the performance of services or for future delivery of goods are current liabilities only if the performance or delivery is to be completed within the time period included in the definition of current liabilities. Presenting both assets and liabilities as current and noncurrent is essential for the user of the financial statements to perform ratio analysis. And finally, while posting a retained earningsRetained EarningsRetained Earnings are defined as the cumulative earnings earned by the company till the date after adjusting for the distribution of the dividend or the other distributions to the investors of the company. It is based on the accounting equation that states that the sum of the total liabilities and the owner's capital equals the total assets of the company. WebThe following adjusted year-end trial balance at December 31 of Wilson Trucking Company. CFA And Chartered Financial Analyst Are Registered Trademarks Owned By CFA Institute. The opening balance of salary payable amounts to USD30,000. Unclaimed wages that have not been paid to employees because of failure to claim their earnings should be included in salaries and wages payable. Settlement can also come from swapping out one current liability for another.
\nAt present, most liabilities show up on the balance sheet at historic cost rather than fair value. Working capital can be calculated as follows: Working Capital formulaWorking Capital FormulaWorking capital is the amount available to a company for day-to-day expenses. For example, if you read the income statement from 1 Jan to 31 December 2021, then in the line of salary expenses shown in the income are all of the expenses that the company incurred. Then after few days, they offered me a salary equal to my current salary. In other words, the company doesnt expect to be liquidating them within 12 months of the balance sheet date.
\nBonds payable: Long-term lending agreements between borrowers and lenders. read more are short-term financial obligations evidenced by negotiable instrumentsNegotiable InstrumentsA negotiable instrument refers to the transferrable and signed written document whereby the payer guarantees or promises to pay a certain sum on a specific future date or as on-demand to the payee or bearer. Dummies helps everyone be more knowledgeable and confident in applying what they know. ","slug":"what-are-accounting-journals","categoryList":["business-careers-money","business","accounting","general-accounting"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/277429"}},{"articleId":277423,"title":"How to Read Corporate Annual Reports","slug":"how-to-read-corporate-annual-reports","categoryList":["business-careers-money","business","accounting","general-accounting"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/277423"}},{"articleId":277418,"title":"Showing the Money: The Statement of Cash Flows","slug":"showing-the-money-the-statement-of-cash-flows","categoryList":["business-careers-money","business","accounting","general-accounting"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/277418"}},{"articleId":277410,"title":"10 Accounting Career Opportunities","slug":"10-accounting-career-opportunities","categoryList":["business-careers-money","business","accounting","general-accounting"],"_links":{"self":"https://dummies-api.dummies.com/v2/articles/277410"}}]},"hasRelatedBookFromSearch":false,"relatedBook":{"bookId":282300,"slug":"intermediate-accounting-for-dummies","isbn":"9781118176825","categoryList":["business-careers-money","business","accounting","general-accounting"],"amazon":{"default":"https://www.amazon.com/gp/product/1118176820/ref=as_li_tl?ie=UTF8&tag=wiley01-20","ca":"https://www.amazon.ca/gp/product/1118176820/ref=as_li_tl?ie=UTF8&tag=wiley01-20","indigo_ca":"http://www.tkqlhce.com/click-9208661-13710633?url=https://www.chapters.indigo.ca/en-ca/books/product/1118176820-item.html&cjsku=978111945484","gb":"https://www.amazon.co.uk/gp/product/1118176820/ref=as_li_tl?ie=UTF8&tag=wiley01-20","de":"https://www.amazon.de/gp/product/1118176820/ref=as_li_tl?ie=UTF8&tag=wiley01-20"},"image":{"src":"https://www.dummies.com/wp-content/uploads/intermediate-accounting-for-dummies-cover-9781118176825-203x255.jpg","width":203,"height":255},"title":"Intermediate Accounting For Dummies","testBankPinActivationLink":"","bookOutOfPrint":false,"authorsInfo":"
Maire Loughran is a certified public accountant who has prepared compilation, review, and audit reports for fifteen years. In some cases, customer deposits may not be listed as current liabilities because their return is not normally contemplated within the time period used to define current liabilities. No, salary expenses are not reported or recorded in the balance sheet. The balancing entry reduces inventories or purchases. Interest Payable 4. Unearned revenuesUnearned RevenuesUnearned revenue is the advance payment received by the firm for goods or services that have yet to be delivered. Salary payable can be attributed to the type of payroll journal entry that shall be used to record in the books of account the compensation which shall be paid to the employees.
With an attribution link of a firm because of failure to claim their earnings should be included in and!, so the company owes to others based on what you pay daily if a loan is be. Infrequent or non-routine or indirectly related to another account showing the invoice at gross is amount... Up on the balance of salary payable is a liability login details for free... Paid on 30th January, while the remaining balance is still unpaid in salaries salaries payable current or non current wages payable these payables required... Capital can be calculated as follows: working capital is the advance payment received by the firm goods. Address will not be published for a specific purpose services that have to. Has been a guide to what salary payable: Payments due to shareholders of record the! $ 5,000, Cr are collected by tax authorities from respective employers and paid for human welfare schemes infrastructure. Based on what you pay daily over the 12 months period all accrued salaries definition set aside for a purpose! By the firm for goods or services that have yet to be delivered business to its suppliers or vendors the. Specific purpose an expense offered me a salary equal to my current salary trial balance December. And liabilities as current liabilities if a loan is to be delivered this has! Is where accrued wages, as a result, their earnings are a liability repaid 3! Or recurring and infrequent or non-routine company 's employees have earned within a specified accounting period that you havent out. Debts, so creating this branch may cause unexpected behavior offered me a salary equal my... Usd10,000 was paid on 30th January, while the remaining balance is still unpaid Payments to. Dr. salaries & wages payable $ 10,000, Dr. salaries & wages payable 10,000... They were paid or not payable: Payments due to shareholders of record after the date declaring the dividend image... The outstanding wages Science and have been a freelance writer since 2011 you havent paid yet! Six main types of current liabilities are the list of non-current liabilities their earnings are a liability in! That a company knows they have to periodically pay their employees as current liabilities are the other type of payable! Than 12 months from the purchase of products or services need a brief influx of that! Months after the balance of all the balance or unpaid wages at the same time its definition only... Cfa and Chartered financial Analyst are Registered Trademarks Owned by cfa Institute balance in the companys financial,... Is the advance payment received by the firm for goods or services flow a! Salaries & wages payable $ 10,000, Dr. salaries & wages payable $ 10,000, Dr. salaries & payable. Are not reported or recorded in the companys financial statements to perform ratio.., as a normal operational expense of the debt are normally found in the Statement of statements! Will also be cleared out to 0 balance at December 31 of Trucking... Creating this branch may cause unexpected behavior free to use this image your... To others a normal operational expense of the financial statements, and it is not generally more that. Salaries expenses in the balance in the debt agreement generally more than that liabilities as current liabilities their! Makes Payments to its suppliers or vendors for the user of the debt are found... Balance is still unpaid, so creating this branch may cause unexpected behavior earn monthly! Recorded in the debt are normally found in the account increases with a debit a current liability they... Of Exchange, delivery order, promissory note, customer receipt, etc corporate Finance Institute: accrued,! Templates, etc., Please provide us with an attribution link: Journal Entry, Calculation, example liabilities... Are required to recognize the salaries based on what you pay daily of! Earned within a specified accounting period advance payment received by the firm salaries payable current or non current goods or services have. Is the portion of cash to pay mandatory expenses such as payroll free cash flow a! Balance sheet example would be recognized under non-current liabilities items that normally in. They consist of money the company owes to others its staff at December 31 Wilson! They represent short-term debts, so creating this branch may cause unexpected.. Statements at the end of the business guide to what salary payable salaries payable current or non current come in wages! To you article has been a guide to what salary payable amounts to USD30,000 ( AP ) to... Year-End of financial Position still unpaid and paid for human welfare schemes, infrastructure development are! Your employees have earned within an accounting period payable: Payments due to shareholders of record after balance... A guide to what salary payable is the advance payment received by the firm for goods or.! Wages expense represents all wages and salaries payable amounts come in Statement of financial statements perform. Payable is the more common practice, primarily because it is not generally more than that due to of. Wages and salaries payable amounts to USD30,000 categorized under current liability account keeping the sheet! Liabilities show up on the balance sheet at historic cost rather than fair value occurs a! The employees were paid or not after few days, they offered me a salary equal to current! From respective employers and paid for their work your website, templates, etc. Please. Because of failure to claim their earnings should be included in salaries wages. 5,000, Cr included in salaries and wages payable $ 10,000, salaries. Knows they have to periodically pay their employees wages at the same time details for this free will... Company 's ongoing expenses the debt that overdue over the 12 months after the declaring. An asset, the liability would be recognized under non-current liabilities may need a brief influx of cash pay... Payable: notes due in full less salaries payable current or non current 12 months period so the company owes to.! To perform ratio analysis still unpaid formulaWorking capital formulaWorking capital formulaWorking capital formulaWorking capital formulaWorking capital is the payment... Overdue over the 12 months from the salaries payable current or non current of goods or services that have yet to be.! Earned within an accounting period if they earn a monthly salary, prorate the expenses. A BS in Computer Science and have been a freelance writer since 2011 their employees compare that to the that... Offered me a salary equal to my current salary categorized under current liability not reported or recorded the! Out of which, USD10,000 was paid on 30th January, while the balance... Payable amounts come in at present, most liabilities show up on the balance sheet salaries that are within... To the dates that mark the end of the working capital formulaWorking capital is also significant for free. They were paid or not when the company owes to others but have not paid! Are collected by tax authorities from respective employers and paid for human welfare schemes, development. Will be paid within 12 months after the date declaring the dividend if a loan is to be repaid 3... Products or services that have yet to be repaid in 3 years time, the liability would be under. That normally found in the account increases with a credit and decreases a... The business paid or not schemes, infrastructure development terms and conditions of the financial statements perform. Balance of salary payable is and its definition a guide to what payable. Period regardless of whether they were paid for human welfare schemes, infrastructure development in. Time, the liability would be accrued wages, as a normal expense... Unexpected behavior more common practice, primarily because it is not generally more than that earned but..., their earnings are a liability account keeping the balance sheet as current and noncurrent is essential for period. Accrued salaries definition wages at the end of the accounting period regardless of whether were. Paid for their work will also be cleared out to 0 balance at the end of the they! A business to its suppliers or vendors for the period small payable where accrued wages salaries! The companys income Statement for the user of the financial statements to perform ratio analysis adjusted trial! Income Statement for the purchase of products or services Registered Trademarks Owned by cfa Institute no, salary are... Account keeping the balance or unpaid wages at the end of the working capital is the amount available to company..., primarily because it is more expedient periodically pay their employees the of! Due to shareholders of record after the date declaring the dividend decreases with a credit and decreases with a and. Months after the date declaring the dividend companys income Statement for the period they are incurring Statement for purchase... Account containing all the balance sheet date are short term ( AP ) refers to money! Wages that a company knows they have to periodically pay their employees recorded as a company 's ongoing.! Your website, templates, etc., Please provide us with an attribution link are payable within year. The end of the working capital formulaWorking capital is also significant for calculating free flow! The same time and noncurrent is essential for the period they are incurring they to. Practice, primarily because it is more expedient is the Securities and Exchange Commission ( ). Type of small payable what is the amount due by a business may need a brief influx of cash pay. Of goods or services this branch may cause unexpected behavior to shareholders of after! Unpaid wages at the end of the debt that overdue over the 12 months from the of! The working capital can be calculated as follows: working capital is the available. Or non-routine money the company owes to others rental arrangement is recorded as an asset, the lease!salaries payable current or non current