financialact11-10 - Voluntary deductions-withheld from...

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Voluntary deductions-withheld from pay-parking pass on cornell’s campus Gross pay minus taxes equals net pay Social security and medicare taxes are FICA taxes-7.65% of pay-Cornell matches it to pay same amount and pay rest of FICA-15.3% of gross pay actually goes into it If you don’t pay them on time, you get penalized-remit them in a timely manner If IRS determines that nonprofit or other organization is negligent and skimps on taxes, they can go after them Accounts payable turnover=cost of goods sold/accounts payable? Contingent liabilities Big for financial reporting-big deal Trying to gage whether an item or event should be included in financial statements or not Event that has occurred-should be included or not Contingent liabilities-potnential liabilities that arise because of events or transactions that have already occurred Use matrix to determine if should be included-probability of future sacrifice… Record contingent liability-make journal entry-that entry affects income
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This note was uploaded on 03/01/2009 for the course AEM 2210 taught by Professor Little,j. during the Fall '07 term at Cornell University (Engineering School).

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financialact11-10 - Voluntary deductions-withheld from...

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