Accounting Notes- Day 18

Accounting Notes- Day 18 - What is the journal entry?...

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ACCOUNTING 2000 10/25/11 Current Liability -pay within year -company expects to pay the debt from existing current assets or through the creation of other current liabilities -ex) notes payable, accounts payable, unearned revenues Notes payable -written promise to pay -require the borrower to pay interest -those due within one year of balance sheet date 1. Cash XX Note payable XX Interest expense PXRXT 2. Interest expense XX Interest payable XX 3. Maturity date: Note payable XX Interest payable XX Cash XX Sales tax payable -expressed as stated percentage of sales price -retailer collects tax from customer -retailer remits the collections to the state’s department of revenue Sales + Sales tax/ 1 + sales tax rate = sales CLICKER: Tiger Co. had daily receipts of $21,400 which included a 7% sales tax.
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Unformatted text preview: What is the journal entry? Credit to sales tax payable for $1,400 Unearned revenue-revenues that are received before the company delivers goods or provides services-company debits cash, credits current liability Cash XX Unearned Revenue XX Unearned Revenue XX Revenue XX Current maturities of long-term debt-portion of long-term debt that comes due in the current year-no adjusting entry required Payroll and payroll taxes payable Payroll pertains to: 1. Salaries-managerial, administrative sales personnel (monthly or yearly rate) 2. Wages-store clerks, factory employees, and manual laborers (rate per hr) Employee (EE) taxes:-FICA tax-federal income tax-state income tax (liability) Employer (ER) taxes:-FICA tax-federal unemployment tax-state unemployment tax...
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Accounting Notes- Day 18 - What is the journal entry?...

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