Financial Accounting Ch. 11

How are current liabilities of known amounts accounted for: 3 main characteristics of a liability

How are current liabilities of known amounts accounted for: The two sections of a Liability

Current & Long - Term

How are current liabilities of known amounts accounted for: Current Liability

Examples: Acc payable, notes payable, salaries payable, interest payable and unearned revenue

How are current liabilities of known amounts accounted for: Long - Term Liability 

How are current liabilities of known amounts accounted for: Accounts payable

How are current liabilities of known amounts accounted for: Sales Tax payble

How are current liabilities of known amounts accounted for:

How are current liabilities of known amounts accounted for:

How are current liabilities of known amounts accounted for: Income Tax payable

How are current liabilities of known amounts accounted for:

How are current liabilities of known amounts accounted for: Unearned Revenue

How are current liabilities of known amounts accounted for:

How are current liabilities of known amounts accounted for:

How are current liabilities of known amounts accounted for: Short term notes payable

How are current liabilities of known amounts accounted for: 

How are current liabilities of known amounts accounted for:

How are current liabilities of known amounts accounted for:

How are current liabilities of known amounts accounted for:

Interest payable example, match the journal entry

How are current liabilities of known amounts accounted for: 

How are current liabilities of known amounts accounted for: Current portion of long term notes payable

How do companies account for and record payroll: Payroll

How do companies account for and record payroll: Straight time 

How do companies account for and record payroll: Gross pay

How do companies account for and record payroll: Net pay

How do companies account for and record payroll: Withholding deductions

Amounts withheld from paychecks like insurance companies or investments that gets deducted from a employee paycheck.

How do companies account for and record payroll: Income Tax Withholding

How do companies account for and record payroll: Withholding for employee social security tax (FICA, Federal Insurance contributions act)

How do companies account for and record payroll: Withholding for employee social security tax (FICA Tax, Social Security)

How do companies account for and record payroll: 2 components of FICA Tax

OASDI & Medicare

How do companies account for and record payroll: OASDI

How do companies account for and record payroll: Medicare

How do companies account for and record payroll: 

FICA Tax ex

How do companies account for and record payroll: Optional withholding deductions example

How do companies account for and record payroll: Payroll register

Salaries & wages expense correlates with the current period gross earnings of each employee

How do companies account for and record payroll: Payday Journal entry

How do companies account for and record payroll: The 3 different payroll taxes

1. FICA Tax, Unemployment Compensation Tax: 2. Federal Unemployment Tax (FUTA) & 3. State Unemployment Tax (SUTA or SUI)

How do companies account for and record payroll: FICA Tax

How do companies account for and record payroll: Unemployment Compensation Tax

Includes the two unemployment tax

How do companies account for and record payroll: Payroll tax Journal entry

How do companies account for and record payroll: Journalizing payroll liability payments

How do companies account for and record payroll: What are the 2 main controls for payroll

Controls for efficiency & Controls to Safeguard payroll disbursements

How are current liabilities that must be estimated accounted for: Bonus plans

How are current liabilities that must be estimated accounted for: 

How are current liabilities that must be estimated accounted for: Adjusting entry example

How are current liabilities that must be estimated accounted for: Vacation, Health, and Pension benefits

How are current liabilities that must be estimated accounted for: 

How are current liabilities that must be estimated accounted for: Warranties

An agreement that guarantees a companys product against defects

Have to record estimate warranty expense, same time period as sale

How are current liabilities that must be estimated accounted for: 

How are current liabilities that must be estimated accounted for: 

How are contingent liabilities accounted for: Contingent Liability

A potential liability that depends on a future event.

How are contingent liabilities accounted for: The 3 categories of future event

Remote, Reasonably Possible, and Probable.

How do we use the times - interest earned ratio to evaluate business performance: Times - Interest earned ratio

Evaluates a business’s ability to pay interest expense.

How do we use the times - interest earned ratio to evaluate business performance: Times - Interest earned ratio Example

Not a good sign from pepsi if we like to see this ratio improve year to year.