Payroll Accounting - Ch 12 & 13
Weekly, Biweekly, Semimonthly, Monthly
What is a pay period?
The items of merchandise a business has in stock.
What is inventory?
The account used to record the cost of merchandise purchased during a period.
What is purchases account?
A column total written in small pencil figures.
What is footing?
Managers, stockholders, and creditors need to know and to make sound business decisions.
What is net income and the value of stockholders' equity?
The total amount an employee earns in a pay period. Payroll deductions are amounts withheld from an employee’s gross earnings.
What is Gross Earnings?
A rate of pay based on the number of items produced.
What is piece rate?
is the sale of merchandise that will be paid for at a later date and is a customer to whom a sale on account is made.
What is sale on account and a charge customer?
A separate ledger that contains accounts for all creditors; it is summarized in the Accounts Payable controlling account in the general ledger.
What is accounts payable subsidiary ledger?
A special journal used to record all transactions in which items are bought on account.
What is the purchases journal?
If a balance is not up to date as of the last day of the fiscal period, it must be .
What is adjusted?
What most merchandising businesses are?
What are retailers and wholesalers?
Federal Income Tax, Social Security Tax, City and State Income Tax (not required in all areas/states).
What are deductions?
A business periodically sends the collection of to the state. Until then, the amount owed is recorded in a liability account called Payable. Same answer for both blanks.
What is sales tax?
The form a business uses to notify its suppliers (creditors) of a return or to request an allowance.
What is debit memorandum?
A is prepared after posting the column totals.
What is a schedule of accounts payable?
Corporations have a account instead of the sole proprietorship’s owner’s capital account.
What is capital stock?
The most important thing a retail business purchases.
What is merchandise to resell?
The expense account used to record employees’ earnings.
What is Salaries Expense?
Terms that state the time allowed for payment for a sale on account.
What is credit terms?
Shipping term specifying that the buyer pays the shipping charge from the supplier’s shipping point.
What is FOB shipping point?
The is used to record credit sales of merchandise. The is used to record the cash a business receives.
What is a sales journal and cash receipts journal?
A corporation’s accumulated net income that is not distributed to stockholders.
What is retained earnings?
Sales journal, cash receipts journal, purchase journal, cash payments journal.
Taxes collected to provide funds for workers who are temporarily out of work; usually paid only by the employer
What are FUTA and SUTA?
Cash sales, charge customer payments, bankcard sales, other cash receipts.
What are the four types of cash receipts?
After an invoice is journalized, it is put in a according to its .
What is a tickler file and due date?
Journals that have amount columns for recording debits and credits to specific general ledger accounts.
What are special journals?
The dollar amount assigned to each share of stock before it is sold to the public; used to determine the amount credited to the capital stock account.
What is par value?
Trial balance, adjustments, adjusted trial balance, income statement, and balance sheet.
What are the five amount sections in the ten column work-sheet?