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Unformatted text preview: -When it is time to pay the government the tax… Sales Tax Payable 90 Cash 900 10-1 Inventory 20,00 Notes Payable 20,000 12-31 Interest Expense 45 Interest Payable 450 Cash 10,90 Sales Revenue 10,000 Sales Tax Payable 900 2 Income Tax-Say that your first paycheck is $10,000. After income tax, you only take home $8,035. Salary Expense 10,00 FICA Payable 765 Income Tax Payable 1,200 Cash 8,035-Whenever the company has to pay the government, this is the entry: FICA Payable 765 Income Tax Payable 1,20 Cash 1,965...
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- Fall '08
- Revenue, Generally Accepted Accounting Principles, Promissory note