Question

1. Current liabilities

a. Definition of current liabilities

b. Accounting for payroll

i. Prepare journal entry to record payroll

ii. Prepare journal entry to record payroll taxes

2. Understand the classifications: secured and unsecured bonds, callable and convertible bonds

3. Understand the concepts: market interest rate, contractual interest rate, face value, market

value (the present value) of a bond

4. Accounting (journal entries) for bonds transactions

a. How is the price of a bond quoted?

b. Issuance of bonds at face value

c. Issuance of bonds at discount or premium

i. Journal entries

ii. interest implication of the issuance discount and premium

d. Amortization of premium on bonds payable

i. Computation and journal entries

ii. Changes of the account balance

Answer 1

	Ans 1 a Current Liabilities are the short term obligations/liabilities of an entity which is due within one year. So an entity needs to pay for these short term obligations within one year. These are the major part of entities liabilities. Examples are Accounts payable, salaries payable, income tax payable etc.
	ans 1b
	entry to Record payroll with taxes
	Date
	Accounts	Dr	Cr
	Salaries expenses	XXX
	Federal Income Tax payable		XXX
	Social secuity taxes payable		XXX
	Medicare taxes payable		XXX
	Medical Insurance payable		XXX
	Union dues payable		XXX
	United way deduction payable		XXX
	Salaries Payable		XXX
(if there are any other deductions than those are also credited)
Dear student there are four different questions, I have answered the first one