财务会计概念与应用英文版Lecture8研讨.pptVIP

* * * * * * * 31 * COPYRIGHT ? 2008 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. * Chapter 8 Completing the Operating Cycle Albrecht, Stice, Stice, Swain * Employee Compensation Payroll Recognize the expense. FICA taxes and Federal income withholdings. Withholding these taxes for the government. They should not be recognized as an expense of the company. Employer payroll taxes Employer’s portion of FICA taxes. Federal and state unemployment taxes. Added to taxes payable to the government. * Payroll Journal Entries Salaries Expense. . . . . . . . . . . . . . . . . . . . . . 2,700 FICA Taxes Payable, Employee. . . . . . . 180 Federal Withholding Taxes Payable . . . 486 State Withholding Taxes Payable . . . . . 243 Salaries Payable . . . . . . . . . . . . . . . . . . . 1723 To record employees’ salary. Payroll Tax Expense. . . . . . . . . . . . . . . . . . . 278 FICA Taxes Payable, Employer . . . . . . . 180 Federal Unemployment Taxes Payable. 30 State Unemployment Taxes Payable. . . 68 To record liabilities associated with employees’ salary. * Other Employee Compensation Bonuses Recorded just like payroll. Many times they are earnings based. Good incentive for management improvement but can also provide incentives to manipulate earnings. Compensated absences Recognized as the employee earns the right to these absences. * Other Employee Compensation Stock options Fair value of the options are recognized over the period the options are earned. Postemployment benefits Severance or other benefits. Estimated and accrued in the period the employees are terminated. * Other Compensation Journal Entries Salaries Expense . . . . . . . . . . . . . . . . . . . . . . 125 Sick Days Payable. . . . . . . . . . . . . . . . . . . 125 To recognize accrued sick pay. Sick Days Payable . . . . . . . . . . . . . . . . . . . . . 125 Various