Chapter 9 - Accounting For Current Liabilities Flashcards
Entry to record Sales Tax Payable
DEBIT - Cash
CREDIT - Sales
CREDIT - Sales Tax Payable
Entry to record Unearned Revenue
DEBIT - Cash
CREDIT - Unearned Revenue
Entry to record when revenue is earned
DEBIT - Unearned Revenue
CREDIT - Revenue
Entry to replace an Account Payable with a Note Payable
DEBIT - Accounts Payable
CREDIT - Cash (if given)
CREDIT - Notes Payable
Entry to record payment of note payable when due
DEBIT - Notes Payable
DEBIT - Interest Expense
CREDIT - Cash
Gross Pay
Total compensation an employee earns BEFORE deductions
Net Pay
Aka - take home pay
Gross pay AFTER all deductions
Payroll deductions
Aka - withholdings
Amounts withheld from employees gross pay, either required or voluntary
FICA taxes
Federal Insurance Contributions Act taxes
A federal social security system that provides retirement, disability, survivorship, and medical benefits to qualified workers. Employees cover the costs of the system.
Two groups
- Social Security taxes
- retirement
- disability
- survivorship
- Medicare taxes
- Medical
Employer Taxes
FICA
Unemployment taxes
Voluntary deductions
Other amounts withheld from employee’s earnings at their request
Entry to record accrued payroll
DEBIT - Payroll Expense
CREDIT - Payroll Liabilities
Entry to record payment of payroll to employee
DEBIT - Payroll payable
CREDIT - Cash
Internal Controls for Payroll
- Employee Hiring
- Payroll Preparation
- Timekeeping
- Payroll Payment
Current portion of long term debt
The part of the long term debt due within one year of the operating cycle
