Santa's Workshop Payroll
This is the total amount of money an employee earns in a pay period before any deductions are taken out.
What is gross earnings
A business like a toy shop that sells merchandise directly to the final user (the consumer) is known by this term.
What is a retailer?
Most companies pay employees with this specific document to ensure proper cash controls.
What is a payroll check?
On December 1, Santa sells a toy on account for $200 plus $12 in sales tax. What is the total amount he must debit to the customer’s Accounts Receivable?
What is $212?
What did the other reindeer not let Rudolph do because of his shiny red nose?
Join in any reindeer games
Unlike an hourly wage, this is a fixed amount of money paid to an employee for each pay period, regardless of the hours worked.
What is a salary?
: Items that a business has in stock and intends to sell are referred to by this specific account name in the general ledger.
What is merchandise inventory?
When recording the first entry of a payroll, the workshop must debit this account for the total earnings of all employees.
What is Salaries Expense?
To record the total gross earnings of all workshop elves for a pay period, the accountant must make a debit entry to this specific expense account
What is Salaries Expense?
Which popular beverage is also called “milk punch?”
egg nog
When an elf works more than their scheduled hours, they may earn this, which is calculated as 1.5 times their regular hourly rate.
What is overtime pay?
When a "charge customer" buys a sled today but pays for it later, the transaction is called a sale on this.
What is a sale on account
Beyond taxes withheld from employees, employers must also pay these three specific taxes on wages.
What are FICA, Federal unemployment tax (FUTA), and State unemployment tax (SUTA)?
When the North Pole workshop pays its $130.19 in Federal Unemployment Tax (FUTA), it records a debit to the FUTA tax payable account and a credit to this specific account.
cash
Elvis isn’t going to have a white Christmas, he’s going to have a….
Blue christmas
These mandatory deductions, often called FICA, consist of:
social security and medicare
This type of account, such as "Sales Return and Allowances," is used to reduce the balance of a related account like Sales.
What is a contra account?
When a customer returns a $200 toy plus $12 in tax, the business must debit "Sales Return and Allowances" and this other liability account.
What is Sales Tax Payable
If an office employee buys a used calculator from the business for $30, the workshop records a debit to Cash and a credit to this specific asset account.
What is Office Equipment?
In the classic Christmas movie, How The Grinch Stole Christmas, the Grinch was described with three words. What are they?
Stink,stank,stunk
This voluntary deduction allows a worker to contribute to a retirement plan without paying income tax on those earnings until the money is withdrawn.
What is a 401k plan
To encourage prompt payment, Santa might offer credit terms of 2/10, n/30, which means the customer gets a 2% discount if they pay within this many days.
10 days
When Santa receives a cash payment from a customer to apply to their outstanding balance, he credits this asset account.
What is Accounts Receivable?
A customer with credit terms of 2/10, n/30 pays a $1,500 invoice within the discount period. To record this, the workshop must debit Cash for $1,470 and debit this specific contra-revenue account for $30.
What is Sales Discount?
In the movie, It’s A Wonderful Life, what happened every time a bell rang?
An angel got his wings