会计学原理19th Edition Chapter11

CURRENTLIABILITIESANDPAYROLLACCOUNTINGChapter11PastPresentFutureDEFININGLIABILITIESBecauseofapastevent...Thecompanyhasapresentobligation...ForfuturesacrificesC1Expectedtobepaidwithinoneyearorthecompany’soperatingcycle,whicheverislonger.CLASSIFYINGLIABILITIESCurrentLiabilitiesExpectednottobepaidwithinoneyearorthecompany’soperatingcycle,whicheverislonger.Long-TermLiabilitiesC1CURRENTANDLONG-TERMLIABILITIESPercentofTotalLiabilitiesCurrentLiabilitiesasaPercentofTotalLiabilitiesC1UNCERTAINTYINLIABILITIESUncertaintyinWhomtoPayUncertaintyinWhentoPayUncertaintyinHowMuchtoPayC1AccountsPayableSalesTaxesPayableUnearnedRevenuesShort-TermNotesPayableKNOWN(DETERMINABLE)LIABILITIESPayrollLiabilitiesMulti-PeriodKnownLiabilitiesC2OnMay15,2009,MaxHardwaresoldtoolsandsuppliesfor$7,500thataresubjecttoa6%salestax.SALESTAXESPAYABLEDRCRMay15Cash7,950Sales7,500SalesTaxesPayable450Torecordcashsalesand6%salestax.$7,500×6%=$450C2OnMay1,2009,A-1Cateringreceived$3,000inadvanceforcateringaweddingpartytotakeplaceonJuly12,2009.UNEARNEDREVENUESDRCRMay1Cash3,000UnearnedRevenue-Catering3,000Torecordadvancepayment.DRCRJul12UnearnedRevenue-Catering3,000Revenue-Catering3,000Torecognizerevenueearned.C2Awrittenpromisetopayaspecifiedamountonadefinitefuturedatewithinoneyearorthecompany’soperatingcycle,whicheverislonger.SHORT-TERMNOTESPAYABLEP1OnAugust1,2009,Matrix,Inc.askedCarter,Co.toaccepta90-day,12%notetoreplaceitsexisting$5,000accountpayabletoCarter.Matrixwouldmakethefollowingentry:NOTEGIVENTOEXTENDCREDITPERIODDRCRAug1AccountsPayable-Carter5,000NotesPayable-Carter5,000Toreplacecustomeraccountwithnote.P1OnOctober30,2009,Matrix,Inc.paysthenoteplusinteresttoCarter.Oct30Notespayable-Carter5,000Interestexpense150Cash5,150TorecordpaymentofnoteandinterestInterestexpense=$5,000×12%×(90÷360)=$150NOTEGIVENTOEXTENDCREDITPERIODP1PROMISSORYNOTEFaceValueDateafterdatepromisetopaytotheorderofAmericanBankNashville,TNDollarsplusinterestattheannualrateof.$20,000Sept.1,2009NinetydaysITwentythousandandno/100-----------------6%JacksonSmithNOTEGIVENTOBORROWFROMBANKP1FACEVALUEEQUALSAMOUNTBORROWEDOnSeptember1,2009,JacksonSmithborrows$20,000fromAmericanBank.Thenotebearsinterestat6%peryear.Principalandinterestareduein90days(November30,2009).DRCRSep1Cash20,000Notespayable20,000TorecordnotetoAmericanBank.P1OnNovember30,2009,Smithwouldmakethefollowingentry:DRCRNotespayable20,000Interestexpense300Cash20,300Torecordpaymentofnoteandinterest$20,000×6%×(90÷360)=$300FACEVALUEEQUALSAMOUNTBORROWEDP1NoteDateEndofPeriodMaturityDateAnadjustingentryisrequiredtorecordInterestExpenseincurredtodate.END-OF-PERIODADJUSTMENTTONOTESP1Dec.16,2009Dec.31,2009Feb.14,2010JamesBurrowsborrowed$8,000onDec.16,2009,bysigninga12%,60-daynotepayable.NoteDateEndofPeriodMaturityDateEND-OF-PERIODADJUSTMENTTONOTESP1OnDecember16,2009,JamesBurrowswouldmakethefollowingentry:Dec16Cash8,000Notespayable8,000TorecordamountborrowedfrombankOnDecember31,2009,theadjustmentis:DRCRDec31Interestexpense40Interestpayable40Toaccrueinterestonnote$8,000×12%×(15÷360)=$40END-OF-PERIODADJUSTMENTTONOTESP1OnFebruary14,2010,JamesBurrowswouldmakethefollowingentry.DRCRFeb14Notespayable8,000Interestpayable40Interestexpense120Cash8,160Torecordpaymentofnote$8,000×12%×(45÷360)=$120END-OF-PERIODADJUSTMENTTONOTESP1Employersincurexpensesandliabilitiesfromhavingemployees.PAYROLLLIABILITIESP2EMPLOYEEPAYROLLDEDUCTIONSFICATaxesMedicareTaxesFederalIncomeTaxStateandLocalIncomeTaxesVoluntaryDeductionsGrossPayNetPayP2FICATaxes—Soc.Sec.FICATaxes—Medicare2008:6.2%ofthefirst$102,200earnedintheyear(Max=$6,324).2008:1.45%ofallwagesearnedintheyear.EmployersmustpaywithheldtaxestotheInternalRevenueService(IRS).EMPLOYEEFICATAXESFederalInsuranceContributionsAct(FICA)P2Amountswithhelddependontheemployee’searnings,taxrates,andnumberofwithholdingallowances.Employersmustpaythetaxeswithheldfromemployees’grosspaytotheappropriategovernmentagency.FederalIncomeTaxStateandLocalIncomeTaxesEMPLOYEEINCOMETAXP2Amountswithhelddependontheemployee’srequest.Employersowevoluntaryamountswithheldfromemployees’grosspaytothedesignatedagency.VoluntaryDeductionsExamplesincludeuniondues,savingsaccounts,pensioncontributions,insurancepremiums,andcharitiesEMPLOYEEVOLUNTARYDEDUCTIONSP2Theentrytorecordpayrollexpensesanddeductionsforanemployeemightlooklikethis.DRCRJan.31SalariesExpense4,000FICA-SocialSecurityTaxPayable248FICA-MedicareTaxPayable58EmployeeFederalIncomeTaxPayable420EmployeeMedicalInsurancePayable48EmployeeUnionDuesPayable100AccruedSalariesPayable3,126TorecordaccruedpayrollforJanuary$4,000´6.20%=$248$4,000´1.45%=$58RECORDINGEMPLOYEEPAYROLLDEDUCTIONSP2FICATaxesMedicareTaxesFederalandStateUnemploymentTaxesEmployerspayamountsequaltothatwithheldfromtheemployee’sgrosspay.EMPLOYERPAYROLLTAXESP32008:6.2%onthefirst$7,000ofwagespaidtoeachemployee(Acreditupto5.4%isgivenforSUTApaid,thereforethenetrateis0.8%.)FederalUnemploymentTax(FUTA)2008:Basicrateof5.4%onthefirst$7,000ofwagespaidtoeachemployee(MeritratingsmaylowerSUTArates.)StateUnemploymentTax(SUTA)FEDERALANDSTATEUNEMPLOYMENTTAXESP3The