Salary withholdings social security income taxes

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Unformatted text preview: ployees have earned but have not been paid. • Salary withholdings - Social security - Income taxes - Unemployment taxes - Fringe benefits - ...and others u Yo e d o on tn e m to ed ri mo ze p en erc tag es Current liabilities Hincapie Corporation employees have earned $4,000 in wages that will be paid next week. Hincapie withholds 10% of all wages paid for income taxes and and 7% for social security. Record the accrual of the wages payable. Current liabilities • Sales tax payable - Taxes collected on behalf of state or local governments. - Sales tax NEVER affects the income statement. (seattle: 10%) because they are not earned by company Current liabilities Hincapie Corporation sells $400 worth of merchandise to a customer on credit. The sales tax rate is 8%. Record the sale (OK to leave off cost of goods sold entry). Current liabilities • Current portion of long-term debt - The portion of long-term debt to be paid with current assets. - When transferred from long-term to current... Long-term debt XX Current portion of long-term debt XX When paid... Current portion of long-term debt Cash XX - XX Balance Sheet (in thousands) December 31, 2011 2010 Accounts payable 100,527 84,679 Accrued expenses 69,285 55,138 Current maturities of long-term debt 6,882 6,865 Other current liabilities 6,913 2,465 183,607 149,147 LIABILITIES & STOCKHOLDERS’ EQUITY Current liabilities Total current liabilities Long-term debt, net of current maturities 70,842 9,077 Other non-current liabilities 28,329 20,188 $282,778 $178,412 $268,240 $224,904 366,164 270,021 Total liabilities Stockholders’ equity Common stock Retained...
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