Chapter 8 - P.340 Sales taxes multiply by the sales tax to...

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Chapter 8 P.332 payrolls There are 2 entries – employees & employers Social security taxes (FICA) is the only taxes payable the employers need to match, federal withholding and state withholding taxes is paid by employees Employee salaries entry Salaries expense 2500 Federal withholding taxes payable 400 State withholding taxes payable 200 FICA taxes payable 191 Salaries payable 1709 Employer entry Payroll tax expense 279 FICA taxes payable, employer 191 Federal unemployment taxes payable 18 State unemployment taxes payable 70 P.334 Compensated absence - Record salary expense for sick days P.335 Bonuses P.336 Postemployment benefits Pension – agreement between an employer and employees that provides for benefits upon retirement Define contribution plan – 401 K Employee is at risk because your benefit is based on your investment
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Define benefit plan – benefit formula employer is at risk because they promise you benefits
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Unformatted text preview: P.340 Sales taxes multiply by the sales tax to determine the total price Divide by sales tax + 1 to determine original price P.345 accounting for contingent liabilities Probable future event is likely to occur accounting estimate the amount of the contingency and make the appropriate journal entry, provide detailed disclosure in the notes Reasonably possible the chance of the future event occurring is more than remote but less than likely accounting provide detailed disclosure of the possible liability in the notes Remote the chance of the future event occurring is slight accounting no disclosure required Capitalize doing major renovation Property taxes payable most of the time it based on fiscal year...
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Chapter 8 - P.340 Sales taxes multiply by the sales tax to...

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