“Things Coming Due Faster Than My Will to Function”
This type of liability is expected to be paid within one year or the operating cycle.
What is a current liability?
A written promise to pay a specific amount on a certain date is called this often times with interest.
Name the 4 Payroll Employer Taxes a company must pay.
FICA - SS and Medicaire
FUTA
SUTA
A potential liability that depends on the outcome of a future event.
What is a contingent liability?
What is one voluntary deduction an employee can take?
Retirement, Insurance, charitable, etc.
Long-term liabilities are?
What are liabilities that are due beyond one year are classified as this type.
Where Mr. Hanke obtained his Bachelor's Degree
St. John's University
An employee who has earned $6,500 up to this point, has just earned $800 this pay period. What amount is subject to FUTA and SUTA tax?
$500 (7,000 - 6,500)
Companies must record a contingent liability if it is probable and this.
What is reasonably estimable?
True or False - when an employer withholds Fed and State Income Taxes, they must match them
False
Give an example of an Estimated Liability.
Pensions, health care, PTO, warranties
Contingent Liabilities must be recorded if: Include probability and amount in answer
The future event is probable, and the amount owed can be reasonably estimated.
An employee just had $50 in FICA SS and $20 in FICA - Medicare withheld from their paycheck - what will the employer have to pay in taxes?
$140
Where Ms. Hanke received her Bachelor's Degree
UW - Stevens Point
Mr. Hanke donned the cover of this national catalog/magazine.
Eastbay
PPCocaine sells $9 billion in tickets for upcoming concerts. What is the transaction?
Debit: Cash
Credit: Unearned Ticket Revenue
Chubs Uggs Emporium has sales for its upcoming fashion totaling $4 Billion. What is the journal entry right now?
Debit: Cash
Credit: Unearned Revenue
When recording employee payroll you would debit Salaries Expense and credit all the payables. What is the payable for the net pay you will have to pay your employees.
Salaries Payable
Product guarantees that companies estimate and record are called this type of liability.
What are warranty liabilities?
Who is Cece
A known obligation that is of an uncertain amount but that can be reasonably estimated
What is an estimated liability
CeeMe Grow sold $100 worth of plants and offered an extended warranty should they die. Warranty expense averages 5% of sales. What is journal entry
Debit: Warranty Expense $5
Credit: Estimated Warranty Liability $5
When recording employer payroll taxes:
FICA SS Payable
FICA Medicare Payable
SUTA Payable
FUTA Payable are credited
- what is the debit?
Payroll Taxes Expense
If a contingent liability is only reasonably possible, companies usually do this instead of recording it.
What is disclose it in the notes?
A girl who cannot find a ride to the game Thursday because of various reasons - borrows $100 from mom to pay someone. Later she pays back mom the $100 plus $15 in interest, what is the journal entry? (2 debits and 1 credit)
Debit: Notes Payable $100
Debit: Interest Expense $15
Credit: Cash $115