In the journal entry above, an expense has to be recorded to show the loss. And as a contra entry against this, we have to reduce our purchases account (it is purchases for theperiodic system of inventory) or inventory account (for theperpetual system). In the end of the day the debit...
Payroll expenses are any payroll-related costs that are included in the income statement as an expense and payable by the company (employer). Typical payroll expenses include wages or salaries, company-paid payroll taxes, and the employer-paid part of employee benefits, such as insurance. Answerin...
In the general journal, each entry has the transaction date and the general ledger account titles of the accounts that must be debited and credited to record the transaction.Answer and Explanation: The journal entry must record the utility expense and the in...
Wages payable entail the liabilities present in the company since it owes its workers some money due to unpaid wages over a given period. During closing entries, in case such balances exist where the business owes employees some money. Journal entries are made to show the amount the company ...
Note: In this example we have combined salaries and wages into one account, but sometimes in real life these are kept separate - one account for wages and another account for salaries. T-Accounts: Trial Balance: Tutorials relating to this T-Accounts, Journal Entry and Trial Balance Question:...
What is payroll accounting? What is a payroll journal entry? How to record payroll Using an existing payroll serviceWhat is payroll accounting? Payroll accounting keeps track of five essential payroll-related costs and obligations. Employee compensation: Salaries, wages, paid time off (PTO), and ...
In short, reservation wages are the basis on which people build their expectations of acceptable salaries [30]. The primary reservation wage is the supplementary benefit. In the healthcare sector, barriers to labour force entry are high due to the knowledge and skills required, leading to a ...
Journal Entry Debits Credits Contra-equity –Unearned (deferred) Compensation 1 $3.0 million Retained earnings –SBC expense $3.0 million We now turn to the accounting and journal entries for stock options, which are a bit more complicated. 2. Stock Options Example On January 1, 2018, Jones ...
In regular business, many petty expenses are incurred for the smooth functioning of the business. However, these expenses are neither regular in nature nor significant in amount. Also, these expenses don't fit into other standardized general ledger accounts such as Wages, Salaries, Advertisements, ...
Description Provides a brief description of each transaction, including details like Salaries and Employee Wages, Payroll Tax Payable, and Bank Account. Debit Lists the amount deducted from the company’s accounts for each transaction. Credit Lists the amount credited to the company’s accounts for ...