Payroll. Introduction to Accounting: An Integrated Approach 3rd Edition Penne Ainsworth, Dan Deines Mcgraw-Hill2004, ISBN 0072473835 . Start to Finish #8. Presented by. Hello, and welcome to this brief tutorial on debits and credits.
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Introduction to Accounting: An Integrated Approach
Penne Ainsworth, Dan Deines
Mcgraw-Hill2004, ISBN 0072473835
Start to Finish #8
Hello, and welcome to this brief tutorial on debits and credits.
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University of Wyoming – Delta Alpha Chapter
In this problem we will assume that FICA is 7%, FIT is 15%, and FUTA is 2%Background Info
Remember, each shirt costs $10 and each logo costs $.1
1st: Debit T-shirts $1,000
2nd: Debit Logos $120
3rd: Credit Accounts Payable $1,120
1st: Debit Accounts Payable $1120
2nd: Credit Cash $1120
Since you did not pay within the discount period you do not receive a purchase discount
1st: Debit Payroll Expense
2nd: Credit Accounts Payable
Payroll Tax Expense
First: Calculate Tax Amount
Second: Debit Payroll Tax Expense for the total amount
Third: Credit each FICA, FUTA, and FIT Payable Account
1st Adjustment: Prepaid Insurance
First: Debit Insurance Expense
Second: Credit Prepaid Insurance
Remember that this adjustment makes the Prepaid Insurance Account 0 because the insurance expired during the month.
Office Supplies Expense
2nd Adjustment is to Office Supplies
First: Debit Office Supplies Expense
Second: Credit Office Supplies
Remember that there are only $50 worth of supplies left at the end of the month. This means that $400 worth were used.
This is what the general journal will look like after all the adjusting entries are made.