BU397 Lecture Notes - Lecture 1: Promissory Note, Accounts Payable, Current Liability
Document Summary
Interest bearing dr. cash ,000 and cr. Notes payable ,000, then dr. interest expense ,000 and cr. Interest payable ,000: zero interest bearing dr. cash ,154 and cr. Notes payable ,154, then dr. interest expense ,846 and cr. Income tax and other payroll deductions e. g. cpp premium, ei and union dues, e(cid:373)plo(cid:455)e(cid:396) has (cid:449)ithheld cpp a(cid:374)d ei ta(cid:454)es f(cid:396)o(cid:373) e(cid:373)plo(cid:455)ee"s pa(cid:455)(cid:272)he(cid:395)ues a(cid:374)d the(cid:455) eventually have to send it to the government: 8. ) Payable ,000 when the vacation pay are rolled over to the next year. If the next year it turns out to be more and they used it then, dr. Vacation wages payable ,000 and salaries wages and expense. Cash ,000: non-accumulating rights (benefit is not vest) e. g. parental leave, you are e(cid:374)titled to it if (cid:455)ou a(cid:396)e a pa(cid:396)e(cid:374)t, (cid:271)ut if (cid:455)ou a(cid:396)e(cid:374)"t the(cid:374) (cid:455)ou do(cid:374)"t get it, dr. Payable ,000: then you slowly make deductions e. g. each month, dr. parental leave.
