5 measuring liabilities initial amount of the

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Unformatted text preview: ties Initial Amount of the Liability Cash Equivalent Additional Liability Amounts Increase Liability Payments Made Decrease Liability 6 Current Liabilities Accounts Payable Increases (Credited) when a company receives goods or services on credit Decreases (Debited) when a company pays on its account Accrued Liabilities Liabilities that have been incurred but not yet paid. 7 8 9 Accrued Payroll Adam Palmer earned gross pay of $600 in the current payroll period. General Mills withheld $58 in Federal income taxes, $48.80 for FICA, and $10 for United Way, resulting in net pay of $483.20. 1 Analyze Assets = Liabilities + Stockholders' Equity Cash (-A) -$483.20 FIT Withheld (+L) +$58.00 Payroll Expense FICA Payable (+L) +$48.80 (+E, -SE) -$600.00 United Way (+L) +$10.00 2 Record dr Wages and Salaries E xpense (+E, -SE) cr Withheld Income Taxes Payable (+L ) cr FICA Payable (+L ) cr United Way Payable (+L ) cr Cash (-A) 600.00 58.00 48.80 10.00 483.20 10 11...
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