Question

1. Current liabilities a. Definition of current liabilities b. Accounting for payroll i. Prepare journal entry...

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

Homework Answers

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)
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