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 $10000×12%×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 a d 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 THE UNITED STATES OF 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 is 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