Liabilities and Net Worth FICA TAXES WITHHELD & PAYABLE LIABILITY ACCOUNT 2140 ACCOUNT EXPLANATION TRANSACTIONS COMMENTS ACCOUNT EXPLANATION Amount due the U.S. Government under the Federal Insurance Contributions Act (Social Security), consisting of the employees’ portion which is withheld from their earnings, and the employeer’s portion which is accrued monthly. TRANSACTIONS Jrnl. Dr. Cr. Read more about FICA Taxes Withheld and Payable[…]
Liabilities and Net Worth EMPLOYEE INCOME TAXES WITHHELD—PAYABLE STATE/LOCAL LIABILITY ACCOUNT 2139 ACCOUNT EXPLANATION TRANSACTIONS COMMENTS ACCOUNT EXPLANATION Income taxes withheld from employees’ earnings for remittance to state and local governmental agencies. TRANSACTIONS Jrnl. Dr. Cr. Withholding of state and local income taxes from employees’ earnings PR Accrued Payroll 2410 Read more about Employee Income Taxes Withheld—Payable State/Local[…]
Liabilities and Net Worth EMPLOYEE INCOME TAXES WITHHELD LIABILITY ACCOUNT 2130 ACCOUNT EXPLANATION TRANSACTIONS COMMENTS ACCOUNT EXPLANATION Income taxes withheld from employees’ earnings for remittance to governmental agencies. TRANSACTIONS Jrnl. Dr. Cr. Withholding of federal income taxes from employees’ earnings PR Accrued Payroll 2410 Employee Income Taxes Withheld Read more about Employee Income Taxes Withheld[…]
Liabilities and Net Worth EMPLOYEE DEDUCTIONS LIABILITY ACCOUNT 2120 ACCOUNT EXPLANATION TRANSACTIONS COMMENTS ACCOUNT EXPLANATION Amounts deducted from employees’ earnings for remittance to others, including union dues, insurance premiums, pensions, charitable contributions, garnishments, and savings bonds. TRANSACTIONS Jrnl. Dr. Cr. Deduction of group hospitalization premium from employees’ earnings PR Accrued Payroll Read more about Employee Deductions[…]
Liabilities and Net Worth DIVIDENDS PAYABLE LIABILITY ACCOUNT 2110 ACCOUNT EXPLANATION TRANSACTIONS COMMENTS ACCOUNT EXPLANATION Dividends declared by the board of directors and unpaid at month end. TRANSACTIONS Jrnl. Dr. Cr. Declaration of cash dividend G Dividends Declared 2820 Dividends Payable 2110 Read more about Dividends Payable[…]
Liabilities and Net Worth ACCOUNTS PAYABLE—TRADE LIABILITY ACCOUNT 2100 ACCOUNT EXPLANATION TRANSACTIONS COMMENTS ACCOUNT EXPLANATION Amounts due trade creditors for merchandise, services, and equipment purchased on open account. Ford Motor Company Extended Service Plan registration fee. Parts Inventory Protection Plan and small order handling charge. TRANSACTIONS Jrnl. Dr. Cr. Purchase of parts on Read more about Accounts Payable—Trade[…]
Liabilities and Net Worth BANK LOANS LIABILITY ACCOUNT 2055 ACCOUNT EXPLANATION TRANSACTIONS COMMENTS ACCOUNT EXPLANATION The amount of short-term or demand notes given to banks. TRANSACTIONS Jrnl. Dr. Cr. Demand note given to bank for loan CR Cash in Bank—General 1001 Bank Loans 2055 Read more about Overdraft/Lines Of Credit[…]
Liabilities and Net Worth NOTES PAYABLE—INSTALLMENT SALE BALANCE LIABILITY ACCOUNT 2050 ACCOUNT EXPLANATION TRANSACTIONS COMMENTS ACCOUNT EXPLANATION The deferred percentage of the total notes payable to F.M.C.C. on vehicles floor-planned on an installment sale basis. TRANSACTIONS Jrnl. Dr. Cr. Note given to F.M.C.C. for the balance owing (e.g. 10%) on vehicles purchased on Read more about Notes Payable—Installment Sale Balance[…]
Liabilities and Net Worth NOTES PAYABLE—LONG TERM—CURRENT PORTION LIABILITY ACCOUNT 2040 ACCOUNT EXPLANATION TRANSACTIONS COMMENTS ACCOUNT EXPLANATION Principal amounts of long term notes or mortgages payable to finance institutions or other sources, including officers, partners, etc., maturing within twelve months. TRANSACTIONS Jrnl. Dr. Cr. Reclassification of portion of mortgage due within twelve months Read more about Notes Payable—Long Term—Current Portion[…]
Liabilities and Net Worth NOTES PAYABLE—SHORT TERM—OTHER LIABILITY ACCOUNT 2030 ACCOUNT EXPLANATION TRANSACTIONS COMMENTS ACCOUNT EXPLANATION Principal amount of short term (maturing within twelve months) notes payable to finance institutions or other sources, including officers and partners. TRANSACTIONS Jrnl. Dr. Cr. Note given to bank for loan payable in six months CR Read more about Notes Payable—Short Term—Other[…]