Slide 10-16 Interest Payable Example On December 31, Porter Company would record interest payable with the following entry: Date Description De bit Credit 31-Dec Interest Expense 200 Interest Payable 200 $10,000×12%×212=$200 Irwin/McGraw-Hill ?The McGraw-Hill Companies, Inc., 1999
?The McGraw-Hill Companies, Inc., 1999 Slide 10-16 Irwin/McGraw-Hill Interest Payable Example On December 31, Porter Company would record interest payable with the following entry: $10,000 12% 2 /12 = $200 Date Description Debit Credit 31-Dec Interest Expense 200 Interest Payable 200
Slide 10-17 Payroll liabilities Employers incur several expenses and liabilities from having employees. Irwin/McGraw-Hill ?The McGraw-Hill Companies, Inc., 1999
?The McGraw-Hill Companies, Inc., 1999 Slide 10-17 Irwin/McGraw-Hill Payroll Liabilities Employers incur several expenses and liabilities from having employees
Slide 10-18 Payroll liabilities Gross Pay AMER CA ONE DOLLAR Net Pay State and Medicare Federal Voluntary FICA Taxes Taxes Income Tax Local Income Deductions Taxes Irwin/McGraw-Hill ?The McGraw-Hill Companies, Inc., 1999
?The McGraw-Hill Companies, Inc., 1999 Slide 10-18 Irwin/McGraw-Hill FICA Taxes Medicare Taxes Federal Income Tax State and Local Income Taxes Voluntary Deductions Net Pay Gross Pay Payroll Liabilities
Slide 10-19 Unearned Revenue Cash is sometimes collected from the customer before the revenue is actually earned Deferred Cash is Deferred revenue s a received revenue is liability recorded advance account Irwin/McGraw-Hill ?The McGraw-Hill Companies, Inc,, 1999
?The McGraw-Hill Companies, Inc., 1999 Slide 10-19 Irwin/McGraw-Hill Deferred revenue is recorded. Deferred revenue is a liability account. Cash is received in advance. Cash is sometimes collected from the customer before the revenue is actually earned. Unearned Revenue
Slide 10-20 Unearned Revenue Cash is sometimes collected from the customer before the revenue is actually earned As the earnings process Is completed Cash is Deferred Earned received revenue is revenue is recorded recorded advance Irwin/McGraw-Hill ?The McGraw-Hill Companies, Inc,, 1999
?The McGraw-Hill Companies, Inc., 1999 Slide 10-20 Irwin/McGraw-Hill Earned revenue is recorded. As the earnings process is completed . . . Deferred revenue is recorded. Cash is received in advance. Unearned Revenue Cash is sometimes collected from the customer before the revenue is actually earned